THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES H 47Tn Congress, ) SENATE. i Mis. Doc. . lat /Session. j \ No. 110. IN THE SENATE OP THE UNITED STATES. TESTIMONY l!Kl"(ll!K THE SENATE SPECIAL COMMITTEE Investigate the mhainistration of the collection of internal revenue in the sixth district of Xorth Carolina^ appointed April 21, 1882. JCLY 7, 1882. — Ordered to be printed. Members of committee. — Senator Z. B. Vance, of North Carolina, chair- man; Senator J. W. McDill, of Iowa; Scnatoi- J. I. Mitclicll, of I'enu- sylvania. "^'ASHiNGTON, D. (1, June 7, 1882. The committee met at 10 a. m. W. G. Bogle sworn and examined. By the Chairman : Question. You are a resident of the sixth collection district of North Carolina? — Answer. Yes, sir. Q. Where is your residence— in what part of the district ? — A. Tay- lorsville. Q. Have yon ever been connected with the revenue department in tliat district? — A. Yes, sir. Q. In what capacity? — A. Storelceeper and ganger. Q. How long ? — A. I suppose about three j^ears. Q. What are the duties of a storekeeper and ganger ? It is a double office, ganger and storekeeper combined, is it not? — A. Yes, sir; the duties are, that you are put in charge of a distillery, to see tliat it is running according to law, and to gauge the spirits and stamp, them. Q. Describe a day's work at a distillery ; what time of the morning it Avonld begin its operations, and whether you would have to be present. — A. You have to be there when the distillery commences in the morning ; when they put the fire on, it is the storekeeper's duty to be there and to stay until the fire is drawn away from the furnace in the evening. Q. What was the capacity per day of the distillery at which you were engaged ? — A. I have been at several distilleries. One was 3i and the other -4 bushels. (^>. Do you know anything about the multiplying of distilleries — nuik- ing two or three small ones out of one large one — in that district ? — A. No, sir. J 6 6 6 * 2 COLLECTION OF INTERNAL REVENUE IN Q. You do not know of any instances where tLatlias been done ? — A. Xot of my own personal kno\\led<^o. Q. Do you know of any instances where one man wouhl own two or three stills on the same phmtation or near to it? — A. Yes, sir; 1 don't know Avhether on the same phmtation, but very near. Q. What wouhl be the capacity per day of such stills ? — A. Three and a half to four bushels a day. Q. If these had been in one, the capacity would have been about twelve bushels? — A. Xo, sir; eight. Q. Eight for two stills ?— A. Twelve for three. Q. Was it the same expense to the goverument to run two or three distilleries as it was to run one or more ? — A. I would say it would be more to run two or three. Q. Why ? — A. It requires two or three storekeepers. Q. A storekeeper to every distillery however small ? — A. Yes, sir. Q. There have been allegations that storekeei)ers sometimes divided their pay with the distillers in order to get the distilleries to run ; is that so?-r— A. I have heard of it. Q. Do you know of your own knowledge of any such case ? — A. No, sir. Q. Or from the knowledge or confession of any of the parties ? — A. No, sir. Q. You say you have heard of such things ? — A. Yes, sir. Q. Could you tell me at what distilleries it was said that was done ? — A. I have heard of so many — generally rumored. Q. You do not want to say what particular ones? — A. Daniels. Q. How many distilleries did Daniels have? — A. Three, I believe. That is all I know of. , (). How far were they apart? — A. Two of them within 100 yards of each other. Q. AVhat was their capacity? — A. Four bushels, 1 believe. Q. How far was the third one away ? — A. 1 supi)ose about 10 miles. (}. Who were the storekeepers to these three distilleries of Daniels? — A. Various storekeepers. I have forgotten their names. Mr. Mor- rison there (indicating) was one for a while. Mr. Douglass and several others, 1 can't think of their names now. Q. Can you mention any others that were said to have this operation of dividing ?— A. I have heard that in regard to almost all of the dis- lillerics down there — Coopei'.s and all of them. (}. It is tlie common rumor and understanding? — A. Yes, sir. (}. Was there e\er snch a thing as an assessment levied on you, as an otiiccr, for jiolitical i)Ui[>(»s('s ? — A. 1 was aske. Wiicn? — A. It was after the election. <^). W'liat el('(;tion ? — A. The (larfu'ld campaign. 1 don't know how nniny nninllis after — I tliink sevc^ral months after tlu' campaign. (}. Did you do so? — A. Yes, sir. (}. How much did yon contribnte? — A. ^\()i, (}. What pioportion of yonrsahny wasthat amount ? — A. One month's salary. (,). Did \o 4 COLLECTION OF INTERNAL REVENUE IN Q. Those of Daniels were tlie smallest ? — A. 1 thiok bis were 4 bushels. Q. Where does ^h\ Daniels live? — A. He lives at Statesville. Q. These distilleries were in the town of Statesville? — A. Xo, sir; but near. Q. He had one 10 miles away from where the two were together t — A. Yes, sir. Q, You have no personal knowledge of any division between the storekeepers- and distillers— all you know about it is rumor ? — A. Yes, sir; rumor. Q. Do you make any distinction in your mind between assessment for ofiBce expenses and contributions for campaign funds ; they are two different things, are they not ? — A. Yes, sir. Q. This assessment for office expenses was one per cent, of your monthly salary, was it not?— A. Yes, sir. Q. How long did that last ? — A. I think I contributed about four or live months. Q. Do you remember the time you did so ? — A. Xo, sir. Q. Have you any recollection of it being at a time when there was a deficiency in the appropriation ? — A. I don't know about that. Q. Was there any explanation at the time you were assessed as to the reason for the assessment ? — A. 1 think there was, but have forgot- ten what it was. Q. You remember, however, that it was for office expenses ? — A. It was for office expenses. There was some excuse for assessing us, but I don't know what it was now. Q. That only lasted three or four months ? — A. I think I contributed four or live months. Q. After that you were not assessed for office expenses ? — A. Ko, sir. (}. When you were asked to contribute to the campaign fund did you do so voluntarilj' ? — A. Yes, sir; I told the collector I would contribute of course. I was willing to contribute. Q. AVhen you spoke of the amount of the fund as §20,000 or $25,000, were you speaking of the amount for office expenses tluit the men con- tributed? — A. Of the amount contributed for campaign purposes. (^. You have heard that there was a contribution to that amount ? — A. Yes, sir; I have heard it. Q. Of tliat you have no personal knowledge? — A. Xo, sir; I don't know. (^. Where does Ca])t. Thos. A. Trice live? — A. I don't know where now; he . is that sometimes tlu^ reason why a number of storekeepers are witliout assignment? — A. Ves, sir, (). ^\'ilen a distiUeiy suspen. i'>y the (!ll AliniAN : i). Had you applied for .\(inr monthly pay before this contribution they got you to make for campaign puiposes, and it had been held back? — A. 'I'lie, (;lieck 1 (;(»ntribut<'(l. I had asked for it. I had written for it. THE SIXTH DISTRICT OF NORTH CAROLINA. 5 Q. Had it been payable to you before that tiine ?— A. Before I gave it to the collector? Q. Yes. — A. Yes, sir. Q. Y'oii had asked for it? — A. I had written to the office for it. Q. -Afore than ouce ? — A. f think twice. Q. Did you go to the office for it? — A. Y'es, sir; 1 went to the office for it. There was anotlier check due me. Q. Just explain the transaction. — A. When I went to the office there was another check due nie for anoi^her mouth, and I called on Mr. Coite for the check. He gave me the check that was due me for the last month, and told me to go iu and see the collector with regard to my June check. iPI9 Q. Previous to the check you had just received ? — A. Yes, sir. I went in to see the collector with regard to it and he asked me to give it to him. Q. What are your politics? — A. I am a Republican, sir. A. D. CowLES sworn and examined. By the Chairman: Question. State your residence and occupation. — Answer. States- ville, jS'. C; deputy clerk of the United States court. Q, Have you ever been connected with the Eevenue Department? — A. Yes, sir. Q. In what capacity? — A, Storekeeper and deputy collector. Q. Explain to us the method of subdivision of the distilleries in that country, — A. I don't know, sir; I was connected with the revenue in '70 and '77, and that was when the distilleries were but very few, and before any such reports as division was talked of at all. Q. Do yon know the fact that there are several distilleries made into two or three — or two or three on the same plantation ; and belonging to the same nmu ? — A. Nothing of my own personal knowledge ; I have heard so. Q. Is it not the general understanding in that country, that whoever wants to, can run, instead of one 1 2-gallon still, three i-gallon stills, if he will take the trouble to do it ? — A. I have not heard it generallj' spoken of; I have heard of one or two instances, one notably. Q. Which oue is that?— A. Mr. Daniels. Q. Do you know anything of the division of storekeepers' salaries with the distillers? — A. No, sir; nothing of my own knowledge. Q. A\ hat do you know about political assessments ? — A. I don't know anything, only rumor. I have heard several storekeepers and gangers say they contributed to the campaign fund, and several affidavits were made before me, as deputy clerk of the United States court, to that effect. I know nothing further than that. Q. Do you know or have you an idea from what you know about the matter, of the aggregate amount thus contributed? — A. I have heard it variously estimated, but there is nothing definite. Q. Do you know the number of government envidoj'es in that district ? — A. No, sir. Q. You have no way of arriving at the amount of the aggregate as- sess aient, unless you knew all of them ? — A. No, sir ; not at all. A great many deputy collectors, storekeepers, and gangers are otf duty some of the time. As I understood it from" storekeepers geuerally, those not on assignment were not assessed. Q. Those not at work? — A. Not at woyk at the time. That is the report. 6 COLLECTION OF INTERNAL REVENUE IN Q. Do YOli kiioAT wbetlier any storelveepers have been appointed, and liave waited for mouths and months ^vithont getting any assignment !? — A. Xo, sir. Q. Mr. Bogle tells us that when a distillery suspended the storekeeper was necessarily -without employment nntil another was started. I want to know of any instance where a storekeeper has been appointed and theu had to wait, and never had an assignment. — A. No, sir ; I don't know of such instances as that. Q. Do you know of any man discharged for not voting the Eepubli- can ticket"? — A. No, sir; I don't think the collector ever makes any such stipulation. He has appointed many Democrats, and some of them have changed of their own will. Q. Just as they made contributions ? — A. I don't know about that. I have heard Capt. John Peden, dei)uty collector in Wilkes County (he at one time was a very prominent Democrat in that county, and entered the revenue, and is a Eepublican now); I asked him just from curiosity on one occasion if the collector ever said anything to him about politics. He replied no; it had never been mentioned to him at all ; that he was conscientiously jjersuaded that the Eepublican party was the correct one; that he lived iNorth a good while, and he had seen the Eepubli- can party was the party of the country. I have heard others of less note make the same remark. Q. Was not the present collector, Mr. Cooper, awhile back, a Demo- crat .'' — A. Yes, sir; I think he joined the Eepublican party in 71 or 72, probably '73. Q. And Mr. Sharpe, Avho was a Democrat, is he not now a Eepubli- can! — A. I don't know whether he is a Eepublican. 1 think he bolted from the Democratic convention. He is deputy collector under Mr. Cooper, and was under Dr. Mott. He represented his county in the legislature as a Democrat. \ Q. Was not Mr. Jim Williams a Democrat*? — A. I think he was. (^. A very strong one? — A. Yes, sir; a strong one at one time. il. AVhat ])osition did he get? — A. Storekeeper. Q. When did he become a Eepublican ? — A. I don't know, sir. Q. About the same time he was appointed ? — A. Yes, sir; several years ago. He has been a revenue officer, I sni)pose, G or 8 years. (^). (t)nite a number of them, without mentioning their names in de- tail, were Democrats, but are now Eepublicans and oftice-holders ? — A. Yes, sir ; a great inany of them were appointed as Democrats and are now Eeitublicans, (). Do you know of any. instance where men were indicted for \iola- tion of llic i('\('nue laws who were Democrats and who came out of the indictment as Eei)ublicans ? — A. No, sir. (,). Is not tliat what is said of Mr. Cooper? — A. I have heard it inti- mated. I don't know, of my own knowledge, that that is the case. (^. Have you any idea of the amount of loss to the government by tliis multiplication of stills? — A. None at all. ]\Iy dei)artment is en- tirely different. I am not very familiar with the routine of duties ot tlie revenue ser\ ice, and know nothing of the jn'olits and losses. (^). llow long did you stay as stoiekeeper ? — A. 1 was on duty for about U months. I was (lejjury collector aflei- that for one \ear. (). What are your ])(tlitics ? — A. Ifepublieaii. (j). ^'ou (lid not lia\e to change ? — A. No, sir; 1 was born a Ee]»iibli- can — in '.")<», with tlie Ijepuldicau ]»arty. I'.y Senator McDim,: , <^). Semitor \'an(;e iisked yon ;il»oiil 1 )eiiiocrats becoming liepultlicans. THE .SIXTH DISTRICT OF NORTH CAROLINA. 7 \ Have you any knowledge of Democrats turning over without getting office f — A. oil, yes, sir. Q. There is a sort of a revolution going on there in pul)lic sentiment ? — A. Yes, sir; it is reported so. Q. So it is an exodus of the J)emocrats not confined to those holding ofticef — A. No, sir; not confined to that class. By the Chairman : Q. You have not heard of one turning over to be a Republican with- out the hope of getting an office? — A. Yes, sir; in several instances. A prominent iuan in our ploce, Colonel Sharpe, now postmaster, became a Republican in ISKi. He was not appointed postmaster until 18S0. He became a Republican, I presume, from correct principles and con- scientious motives, Q. You say there is an exodus down there ; what makes the exodus there ; what is the issue among the people ? — A. It is anti-prohibition Democrats who seem to be dissatisfied with the action of the prohibition Democrats, as they call them. Q. For what ? — A. For trying to force on them the sumptnary law which was defeated by a majority of 11(3,000 in our State, and they are going to unite with the Republican party; the Liberal movement, I be- lieve it is called. At least that is reported. Q. To beat the prohibitionists ? — A. Yes, sir; and the Democracy. Q. Is it understood down there that the Republican party is the liqnor party of the country, and the Democracy is the party of temper- ance ! — A. Well, sir, there are about 20,000 prohibition Republicans in the State. Q. How manv votes were cast for prohibition ? — A. About 50,000, I think. Q. And 20,000 of them were Republican ? — A. Dr. ]\Iott puts it at 4,000, but the North State puts it at 20,000. Q. You do not say that it is considered down there that the Demo- cratic party is the party of temperance, and the Republican party the party of free liquor ! — A. I do not know, sir, whether you can classifj^ it or not in that way. Q. The movement against prohibition was irrespective of party. Democrats and Republicans, all united ? — A. Yes, sir ; irrespective of party. Q. Some prohibitionists were Republicans and some Democrats ; the majority, perhaps, of the prohibitionists were Democrats ? — A. Yes, sir. Q. That is about the truth of the whole matter! — A. I think so. By Senator McDill : Q. That movement came by the legislature proposing to amend the constitution, to submit a law to the people ? — A. Yes, sir. Q. What was the political complexion of that legislature ? — A. Largely Democratic, although some Republicans voted with the majority. Q. But the majority were Democratic? — A. Yes, sir. By the Chairman : Q. The majority of the Republicans in the legislature voted for the bill "? — A. My impression is that a majority did not, but that some Re- publicans voted for the measure ; I am not well posted. W. C. Morrison sworn and examined. By the Chairman : Question. How long were you storekeeper and ganger in the service 8 COLLECTION OF INTERNAL REVENUE IN of the sixth internal revenue collection district of ]S"orth Carolina? — Answer. I went in in December, 187S. Q. How long' did you stay in? — A. I have been at Avork up to the X^ast June, 1881. Q. AVhere were you most of the time assigned for duty t — A. I was at several places — in Catawba, Davie and Iredell Counties. Q. Can you give us any information upon this question that I have asked the other witnesses in your presence — the division of distilleries '? — A. No, sir. Q. Do you know of cases where one man owns more than one distil- lery ? — A. Yes, sir; Mr. Daniels owns more than one, or did. Q. Did anybody else ? — A. Not that I know of; I have heard of one who was in Davie County, a Mr. Bailey, and have understood that Mr. Cooper owned several. Q. Do you know the capacity of each one ? — A. No, sir; I do not. Q. That, I suppose, necessitated the employment of additional store- keepers and gangers for every distillery ? — A. Yes, sir. Q. Do you know anything of the division of salaries or pay between the storekeepers and gangers and distillers ? — A. No, sir; I do not. Q. Nothing of that sort? — A. No, sir. Q. Do the distillers have any hand in selecting the storekeepers? — A. I don't know about that. Q. Do you know w^hether the distillers were consulted at all about it ? — A. I don't know personally. Q. Do you know of any cases w^here the storekeepers boarded with the distillers'? — A. Yes, sir; when not near town they have to board with the distillers. Q. Do you know what the price of board was ? — A. No, sir. Q. Where did you board when you were on these various assign- ments ? — A. I boarded with a distiller in Davie County. Q. AVhat did he charge 3'ou for board ? — A. Eight dollars a month. ► Q. Was that the usual price for that country ? — A. I don't know what was the usual price. Q. It was a fair price ? — A. Yes, sir. In Catawba County I boarded in town. Q. Do you know of any political assessments levied upon the offi- cers ? — A. The 1 per cent, business ? Q. ]*olitical assessments for political purposes ? — A. Yes, sir. Q. State what you know about it. — A. They wanted the storekeepers aiul gnagers to ])ay to the campaign fund, the way I understood it. (}. Werii you cal]e('i' cent, of vour salarv was thaf ? — A. For one month, Julv, 18S0. (}. Will you e.\i»lain the circumstances under which you contributed that? — A. ^'es, sir. The (l('i>iity collector, Mr. (iillespie, brought that check to ine, and I sigruMl I he <'lic<'k. (I. lie cjiiiic tn you with ;i blank check for the month of July? — A. Yes, sir. (). \\li;if dill lie say to you? — A. He said there was something he woiihi like me t(» sign; he ha. I le s;iid others had signed them, and drew them ont and asked you to sign yours, ;ind you «lid so ? — A. Yes, sii'. <> \Nli;il l»ec;ime of tliemoiicN ? — A. I don't know. sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 9 Q. Did you liear uiiytliin^' of it afterwards ? — A. No, sir; iiotliiiig more than 1 got a letter from Wasliiugton thanking me for the $25 I had sent them. Q. Yon got a letter from Washington? — A. Yes, sir. Q. By whom was that letter signed? — A. By Commissioner Eanm, I think. (I Thanking you for what ?— A. The $25 1 sent. <^). Had you sent Mr. Eaum any money ? — A. No, sir. Q. Did you ever ask Collector Mott or Deputy Collector (iillespie what became of the money ?- — A. I was intheoftice when another check was due, and I asked Mr. Coite what became of the other. He said I Avould have to see the collector about that; he did not know anything al)out it. Q. Did you ever pay any office expenses; were you ever assessed for that purpose ? — A. Yes, sir ; 1 per cent, on my salary. I don't remem- ber how much I j^aid. Q. You know of others Laving paid tbe same assessment, do you? — A. Yes, sir; several paid I know of. Q. For both purposes — office expenses and the campaign ? — A. Yes, sir. Q. Have you an idea, or have you heard or understood from anybody connected with the service, how much it all amounted to? — A. No, sir. Q. Do you know how many officers and employes there were in that collection district at that time? — A. No, sir; I do not. Q. Therefore you cannot form an idea? — A. No, sir. Q. You understood they were all being assessed one month's salary? — A. All that I knew were being assessed the same way. Q. Did Mr. Gillespie give you any understanding as to that when he asked you to subscribe one month's salary; did he say that was what the others were doing? — A. Yes, sir. Q. AVhat are your i)olitics ? — A. I am a Eepublican. By Senator McDill : Q. When Mr. Gillespie brought you the check, and asked you to give that amount to the campaign fund, you say you signed the check; did you do so voluntarily? — A. Yes, sir; I signed the check. Q. You were willing to contribute that amount? — A. He had not told me the amount, but that the rest had signed, and I told him I would. Q. This was your check for July, 1880? — A. Yes, sir. Q. Do you remember how long after July it was when you signed it ? — A. I don't. It seems to me It was in the month of July he brought it to me. Q. How long after that was it, that you received this letter thanking you for your contribution? — A. 1 don't remember how long. Q. It must have been along in the fall of the year? — A. I don't re- member what the date of the letter was; I don't remember what I did with the letter. Q. Have you not got the letter ? — A. No, sir. Q. You said you think it was from Mr. E.aum ? — A. Yes, sir. Q. You feel quite sure about that ? — A. I think his name was signed to it, sir : I am not positive. Q. Do you remember what the letter said; was it just simply thank- ing you for your contribution of $25 ? — A. There was more than that in it, ])ut I don't remember what it was. (»>. At the time did you understand it was a receipt or acknowledg- ment from some one that you had contributed to this fund for campaign 10 COLLECTION OF INTERNAL REVENUE IN expenses! — A. I did not know what it was for; I had never sent them any money. Q. Did you write to ]Mr. Eauni and ask him wluit it meant '? — A. No, sir. Q. Wlien you went back to the office you talked to Deputy Collector Coite about it t — A. AVhen he came with the check I asked him what became of the July check. He said he did not know ; I would have to see the collector about that. Q. Did you show Mr. Coite this letter ? — A. No, sir. Q. Did you tell him about it ? — A. No, sir ; I never told anybody about it. Q. You don't know to this day what that letter meant f — A. I don't know who sent the money. Q. You don't kuow what it meant ? — A. No, sir. Q. And you never asked any explanation about it ? — A. No, sir. Q. Is the letter sent to you in existence? — A. I don't kuow where it is. Q. Have you looked for it ? — A. No, sir. Q. Will you, when you go home, look for it ? — A. I have been in sev- eral places since then, and don't kuow where it is. Q. Will you make search for it when you get home ? — A. Yes, sir. Q. Will you send it to the committee? — A. Yes, sir. Q. Do you remember how long this assessment for office expenses lasted? — A. No, sir. Q. Can you fix the time when that was made ? — A. ,No, sir. Q. You do not remember whether there was a deficiency in the ap- propriation ? — A. No, sir. Q. Do you remember who asked you to do that ? — A. I do not. Q. How was it done ? Was it kept out of your pay, or were you asked to give 1 per cent. ? — A. Just asked to give 1 per cent., and when I drew the check I paid it. When I was away I sent it back to them. By the Chairman : Q. Do you know who was chairman of the Republican State executive committee that year ? — A. No, sir. Adjourned till 10 a. m. June 8. Washinciton, D. C, June 8, 1882. The committee met at 10 o'clock a. m. A. D. COWLES recalled and examined. By the Chairman : Qiu'Stion. Do you recollect tlie iiulictment against R. A. Cobb? — Answer. No, sir; I do not recollect the indictment, but 1 am satisfied that he wiis indicted in the rnited States court at our place. i}. In the court of which you are deputy clerk ? — A. 1 thiidv proba- bly liefore I had anything to do with the olli(;e. (). Wnw yon <'ver seen iiis in. (}. !)(• yon know what he was indicted Ibr^— A. 1 think for comjdi- cit\ in liands of som«' kind. THE SIXTH DISTRICT OF NORTH CAROLINA. 11 Q. He was a revenue officer ? — A. Tliat was what lie was discharged from the revenue for. i). Do you kuow how h)n*>- it was before lie was restored .'—A. H^o, sir ; but he was restored, Q. And is still a revenue officer? — A. I don't know wlietlier he is at l)resent or not. I know he was after this indictment. Q. You do not know what disposition was made of the indictment ? — A. No, sir ; I don't. Q. Do you know what disposition was made of the indictment against William S. Pearson and Nick Lillington and others? — A. I don''t. Q. You know they were indicted ? — A. No, sir. That was several years ago if so. I have oidy been connected with the court about three years. That was before I had anything to do with it. Q. Do you know of any men who have been discharged from office, or who have failed to get assignment, because of their refusal to divide with the distillers? — A. No, sir. Q. Has any one told you that such has been the case; that they ha' words ; they have a secret language of their own, and he understood it to mean that he had to divide. He did not accede to the proposition, and the man refused to take him. Q. He was not assigned to that place? — A. Not assigned. Q. Did Mr. O. M. Barkley ever tell you that he had been through some experience of that kind with Mr. Eliason? — A. I heard him say that Colonel Eliason wanted his check. Q. Colonel Eliason was a distiller? — A. Y"es, sir; and Barkley was storekeeper. Q. Colonel Eliason asked him for his check. What did he say took place 1 — A. He said he would not give it to him, and they had a kind of row, and somebody else was assigned to the distillery ; that is my impression. Q. Barkley was removed from that distillery? — A. Y^es, sir. Q. And somebody else was assigned to it? — A. I don't know whether he was removed or quit of his own accord, but another assignment was made. Q. He went away from there, and another man was put in his place ? — A. Yes, sir. Q. Did you know anything of, or ever see or hear of a circular letter from the collector's office inquiring as to the politics of all the officers ? — A. No, sir; I never saw it. Q. Did you hear of such a letter? — A. I could not say positively whether I ever did or not; my impression is I never heard of the letter. I suppose that was after my connection with the office. By Senator McDill: Q. With regard to the indictment against Mr. Cobb, I understand you that you have no knowledge about it, only a general impression? — A. Just my impression. I have heard others say he was indicted in the United States court, and Dr. Mott, in his list of those discharged, puts him down as discharged for complicity in frauds. Q. You never saw the indictment, and know nothing about it, nor the reason for his discharge? — A. No, sir. Q. Except the reason given to the public by Dr. Mott ? — A. By Dr. Mott. 12 COLLECTION OF INTERNAL REVENUE IN Q. You do uot kuow whether Pearsou aud Lillingtou were iudicted ? — A. Ko, sir. Q. Where does Howell live ? — A. lu Statesville. Q. Is he living there now? — A. Yes, sir. Q. Y'ou do not know anything- about this j^ropositiou made to ]\Ir. Howell, except what he told you? — A. I don't know a thing about it. Q. And what he told you Avas that a man talked to him in a secret language? — A, In some language. Q. And then Howell told you what he understood? — A. What he un- derstood. Q. That is all you know about the proposition 1 — A. All I know. Q. In the Barkley case, Colonel Eliason was a distiller? — A. Y^es, sir. Q. And Barkley told you that Eliason wanted his check? — A. Asked him tor his check. Q. He would not give it to him and they had a row about it? — A. They had what might be called a row. Q. And the next thing was that Barkley left that distillery and some- body else was assigned to it ? — A. Yes, sir. Q. Y'ou do not kuow whether Barkley requested to be removed, nor anythiug about it? — A. No, sir; I don't know the circumstances. Q. Y'ou never saw the circular from the collector's office asking about the politics of the officers? — A. Xo, sir. AV. G. Bogle recalled aud examined. By the Chairman : (Question. Do you know of the circular letter addressed to the officers inquiring as to their politics? — Answer. Yes, sir; I got a letter of that kind. Q. Could you produce it to me? — A. No, sir. (^. Whom was it signed by? — A. I have forgotten whether it was signed by Dr. Mott or not. My impression is it was. Q. At all events, it purported to come from that office? — A. Yes, sir; and I answered to that office. Q. What was the substance of that letter? Give it from your recol- lection. — A, I don't think I can give it. It wanted to know what iny jtolitics were. That was the meaning of it — all I remember, sir. (,>. Do you know if that letter was addressed to the officers generally ? — A. I tliijik it was. (^>. It was a circular, or scnncthing of that sort? — A. Yes, sir. Q. Do you know of anybody tliat was discharged for failing to comply witli the re(piirements of the collector in regard to voting? — A. Only Cai)tain Piice, iis I stated yesterday. (,). J)o you know anything about a letter addressed by Commissioner I'aum to the officers of that district, incpiiring if they liad received all tlicir ])ay from tlic collector, &c. ? IN'rluips (handing letter) that will icfVcsh your r(M;«»lh'cti()n. — A. (Iteading.) Yes, sir; that is the letter. Ijttcr marked l''.xhibit 1, as follows: llxminT 1. WASiiiN(iT()N, .fa)i'y2C>, 1882. Siir: It lias bi'fi) ri'|Mirli'(| In this ()riil(>y6.s in the sixth dis- trict of N(irtli Caiiiliiia liavc nul ii'idivcd iVuiii llic collector tlio nioiM\v of I he government. 'I'his inqniry is not made THE SIXTH DISTRICT OF NORTH CAROLINA. 13 upon the theory that this office believes Dr. Mott to have been derelict, but because liis official conduct in this regard has by certain parties been brought in (question. Respectfully, (iREEN B. RAUM, Commissioner. Q. Is that ;i copy of tlie letter? — A. That is a copy of the Commis- sioner's letter. (}. Did you see the original ? — A. Yes, sir. (}. Will you say whether you know anything about how that Avas communicated by the collector to the officers, and whether he dictated the form of reply they were to make to it? — A. I don't remember about tliat. Q. Perhaps (handing another letter) that will refresh your recollec- tion? — A. (Eeading.) Yes, sir. Q. Just explain that paper you have in your hands, if you please. Letters marked Exhibit 2, as follows: Exhibit 2. " Copy this." "Write some thing like this." Statesvillk, N. C, Jairy 28, 1882. Hon. Grken B. Raum, Commissioner Int. licvenue, Washington, D. C: Sir: Replying to your letter of the 2t3tli iust., asking whether Collector Mott is in- debted to me on account of any receipt which I have given, &c., I have the honor to inform you that I have always received ray pay promptly, and that the coHector does^ not owe me anything at all. Respectfully, . " O. M. BARKLEY, U. S. S. <;• G. \ Statesville, N. C, Jan'y 31, 1882. Hon. C. J. FOLOER, Secretary of the Treasury, Washington, D. C. : Sir: The foregoing is a true and exact copy of a letter accompanying one of in- quiry to the specified storekeeper and ganger relative to certain charges, &c., pre- ferred against the collector. Whether this form for a reply was issued from the collec- tor's office of this district or from the office of the Commissioner Int. Revenue at Washington I am unable to say. The letter of inquiry was signed by Hon. Green B. Raum. Very respectfully, W. G. BOGLE. The foregoing form was not signed by Mr. Barkley himself, although marked so, and by referring to his letter, dated Jan'y 31, 1882, you will tind that another person answered for him. A. It seems that Mr. Barkley got this form of letter, in compajiy with a letter from the Commissioner, to answer by, showing Mr. Bark- ley how to answer the Commissioner's letter. Q. That form of answer went out with a copy of the Commissioner's letter to each officer — went to Mr. O, M. Barkley? — A. Yes, sir; I don't know only as to Mr. Barkley. Q. I see ill a note appended there that that answer was not signed by Mr. Barkley ? — A. Yes, sir. Q, Although it purported to be ? — A. Yes, sir. Q. DUX somebody else sign the answer form and send it on ? — A. Yes, sir. Q. Where did you get that information ? — A. I think from the gen- tleman that signed Mr. Barkley's name. 14 COLLECTION OF INTERNAL REVENUE IN Q. Who was he ?— A. Mr. Hall Caldwell. (}. Did he tell you he signed the answer for Barkley ! — A. Yes, sir. Q. Do you know whether Barkley was present or not at the time, or had authorized him to sign it ? — A. I don't remember. I think Mr. Barkley authorized him to sign it, and gave him the letter from the commissioner, and also this form of answer, and told him to answer. Q. And he answered for Barkley ? — A. Yes, sir. Q. Was Mr. Hall Caldwell an ofiieer of the revenue department? — A. Yes, sir. Q. Were these marginal remarks in the original letter that you copied this from ? — A. Yes, sir. Q. (Quoting.) ''Copy this." " Write something like this" ? — A. Y^es, sir. Q. Do yon know Avhether these prepared forms and answers went ont to anybody else except Mr. Barkley ? — A. I don't remember, sir. Q. Do you remember any one telling yon to that effect ? — A. No, sir ; I don't now remember. By Senator McDill : Q. Y^ou wrote this letter addressed to Mr. Folger, signed W. G. Bogle (indicating Exhibit 2) ? — A. Y^es, sir. Q. Y^on say yon do not know whether the form that is on the other side of this paper, marked Exhibit 2, was, with another letter from the commissioner, sent to Mr. Barkley ? — A. I don't know, sir. Q. And you do not know anything about that, except by the state- ment of the person who wrote the letter? — A. I saw the letter. Q. Y'ou saw the letter? — A. Y'es, sir; that is the way I got a copy of the form and also the Commissioner's letter. Q. So that your knowledge of its having been sent with the letter is from the statement of the person who showed it to you ? — A. Yes, sir. Q. Who is that person?— A. Mr. Hall Caldwell. Q. Mr. Barkley never told j^ou it accompanied it? — A. No, sir. Q. j\rr. Hall Caldwell told you?— A. Y^es, sir. Q. What did Mr. Caldwell say about this form? — A. I don't remem- ber what he said about it. Q. Did he tell you that it accompanied the letter of the Commissioner? — A. I ])resume so. I presume it did. Q. You do not recollect ? I want to know exactly what you recollect Mr. Caldwell said. — A. 1 do not remend^er what he said. I could not say. Q. Y^ou would not undertake to say that he told you the form accom- panied the letter? — A. 1 would not say he did. I don't remend)er the conversation about it. Q. All that you distinctly remember is, that Mr. Caldwell told you that Mr. Barkley handed him the Commissioner's letter, with a form of a letter wliicii was to be written, and Uarkley's name signed to it? — A. Yes, sir. (}. And lli;it tlicicupon Mr. Caldwell did sign Barkley's name and sent it on. N On ut who liiinishcd the lorin, (n- wlnit the (;ircuHislaiM'es were of (iiinishing the h)iin, yon (h> not know ? — A. \o, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 15 Q. JSTo auswer was dictated to you — you got a similar letter of in- quiry f — A. I dou't reiiieuiber that 1 did. Q. When you were in oftico you got a circular from the collector's office asking- about politics'^ — A. Yes, sir. C^. Was it asking your own personal politics, or about the politics of the officers generally ? — A. About my own politics. Q. You think it was a printed form of circular, or was it a written letter? — A. I don't know whether printed or written, but it was a cir- cular letter. They sometimes wrote them and sometimes printed them — the circular letters. Q. In what way do you distinguish a circular letter from another let- ter? Of course if printed you understood it to be a circular, but would you know the particular form of a circular letter, outside of the fact that it is printed? In other Avords, if I should write you a letter, you would not call that a circular letter"? — A. Xo, sir. Q. Why do you say then that it was a circular letter? — A. 1 think all the officers got the same letter. (}. You think so; probably that was an inference you formed since Then, or at the time; what was to indicate that this was a circular let ter ? — A. I don't know, sir. I don't know anything to indicate it. Q. May it not be that you have got the idea it was a circular letter — A. (Interrupting). It might have been marked such. Q. You remember at the time you thought that was a circular letter, from the fact that every one was getting it? — A. Y^es, sir. Every one were receiving them at the same time that I received it. Q. You don't know whether they did get the letter? — A. No, sir. Q. All that was in the letter was asking your politics? — A. Y^es, sir. Q. The purpose of which you do not know? — A. No, sir. Q. Was it accompanied by any threat or intimation that if not of the right i)olitics you would have to go? — A. I think not. Q. It was just a simple inquiry? — A. Yes, sir. John C. Barkley sworn and examined. By the Chairman : Question. Where do you reside ? — Answer. I reside in Iredell County, North Carolina, within a few miles of Statesville. Q. What is your age ? — A. I will be sixty-two years old in November. Q. Do you know anything about the distilleries of W. A. Daniels? — A. Y'es, sir ; I know where they are located. Q. Do you know how many he had in operation last year and pre- viously ? — A. He had two distilleries on what is called the Kickett place. Q. What was tlieir capacity ? — A. The last capacity was four bushels a. day of each one. Q. How far were they apart? — A. I suppose seventy-tive or one hun- dred yards. It is on the same branch. They got the water from the same fountain. Q. Do you know if they were originally one? — A. They used to run at the ujjper distillery, with an eight-bushel capacity in the upper house ; then they divided and ran four bushels in each one. <^. AVliere were his other distilleries? — A. He had another distillery north of me about six hundred yards — what is called the Sharp place distillery. (}. How far was it from the other two ? — A. A little over half a mile, but still on the old Eickett place. 16 COLLECTION OF INTERNAL REVENUE IN Q. It liad been one plantation ? — A. It had been one plantation. Q. Did he have any other distillery besides those three? — A. They have another distillery that the}^ started up on the White plantation between where I live and the Kickett place. Q. How far was it from the other three ? — A. Almost directly be- tween them. You start to go up from the Sharpe distillery and run off* an air line, and it would leave the Freeze distillery a little south of the other. Q. How far was the farthest one from the other farthest one ? — A. Three-quarters of a mile would cover the whole four. Q. What was the capacity of each one of them? — A. Four bushels. Just during that time, or a short time previous to that, I signed bonds to that effect, which I suppose \^ prima facie evidence of running a dis- tillery near Hickory. Q. That was in an adjoining county ? — A. Yes, sir. Q. That makes five distilleries ? — A. Yes, sir. Q. Do you know of any others ? — A. Yes, sir; there was another one running up at what was called Q. How far is Hickory from Statesville ? — A. About thirty-five miles from Statesville. The other one was called the Home distillery. This was at his own place — probably in Alexander County. Q. That makes six ? — A. Yes, sir. Q. Do you know of awj other f — A. Xo, sir; I believe not. At one time he had run what was called the Kumi)le distillery. Q. There were at one time seven in operation. Do you know the ca- pacity of all of them? — A. My understanding from ' Daniels was that they were all four bushels. Q. How many of these were in his own name? — A. All in his own name, so far as my information goes, except the Q. D. Freeze distillery. Q. Do you know whether he had any hand in choosing the storekeepers for these various distilleries? — A. I cannot say that I do — only from hearsay. i}. What was the general understanding about the manner in which these storekeepers were selected, whether the distiller had anything to say in the selection of them? — A. The people of the neighborhood — it was a very common rumor in the neighborhood that if Daniels did not get who he wanted as storekeeper, his distilleries would stop. I know frequently they did stop and then start up again. Q. Did they stop and start with the same storekeeper ? — A. There was generally a ciiange. Q. And then they started again? — A. Yes, sir. Q. What do you know about the allegation that the storekeepers had to divide their salaries with the distillers? — \. From my own personal knowledge, I know nothing of that. I have heard it said that there was a (li\ i.sion of money between them, but I do not know it. (^>. Did you ever hear any . D. Freeze distillery. (}. (.}. I). I''r<'eze was the in:in In; said (li\ided with him? — A. No, sir; he sjiiil \V. A. Diiniels, lie was the ])ro])er owner; Freeze was only a l)(»gMs mime. lie said Diiniels took his ehec-k and drew his money. TIm'K^ w;is a de[)t coming to me, from Moore, and I talked with him aluint it on«* day. Wi' said, "Damn it, have you not got that money yet .' D;iniels promised to i)!iy it when he took my check and drew my THE SIXTH DISTRICT OF NORTH CAROLINA. 17 money." He said, "I have not got but about thirty-five or forty dollars for my services here." I think his services commenced in September, and this was about the 1st of January following. Q. During that time he had not received but thirty-five or forty dol- lars for his services ! — A. Yes, sir. Q. Where is Daniels' residence? — A. He is down in Statesville. He got home from Virginia a few days ago. Q. Is he still distilling ? — A. He is running what is called the upper house, on the Eickett Branch. Q. Do you know anything about the time that Daniels' storehouse and distillery was robbed ? — A. There have been several robberies there at three or four different warehouses ; but last October at this Freeze's still-house there was a big steal or robbing of some seven hundred odd gallons of whisky. Q. State what you know about it; you were concerned, I believe, as the bondsman ? — A. I know cf it, for I was on the warehouse and dis- tillers' bond. On the 25th of October, that house was entered by a key — that is what was sworn to by Mr. Coite — and robbed of nineteen barrels of liquor ranging from forty to forty-eight gallons to a barrel. There were not nineteen, two had been taken out of the house, had been tax-paid, and there was one "lost tribe" or barrel. One barrel never had been accounted for in any way. There were about $077 of taxes. The house where the liquor was taken out of — I was there with several of my neighbors, with Mr. McLeer and Mr. Brooks, govern- ment agents — there was no mark of robbery on the house in any shape or form. We examined it carefully because the house could have been, broken into, but it was not broken into, and was only entered by a key. Q. That still-house was then under suspension ? — A. Yes, 'sir ; under suspension. Q. Do you know whose duty it was to have charge of that key when the distillery was under suspension f — -A. The general storekeeper was the only one — you know more about the law than I do. Col. W. Sharpe shippetl one barrel of this liquor away from there. I think Mr. Bogle took out one also. Q. Who was the general storekeeper of that district"? — A. I am not sure whether it was Col. Wash Sharpe or who it was. It belonged strictly to Doctor AY alter Mott, the general storekeeijer and ganger. That is in his district. Q. Was he present when you made the examination — General Store- keeper Mott? — A. No, sir. Q. Who made the discovery and seizure showing the liquor had been moved out of the house ? — A. It was common neighborhood rumor,, because it is a thickly populated country and the wagons rattled \'ery much when the liquor was taken out, and a storekeeper that belonged to another distillery below passed by my house and told me that the stills were gone out of the house, but he said, "I do not think the liquor- is gone, for they have not hurt the house." That quieted me a little,, for I was in a considerable fret. I was ignorant of all these things ex- cept my signature on the bonds, and you know that bore very hard on the old man. I was very unwell at that time. Directly afterward.s Mr. Daniels came there himself and informed me of the report that the litjuor was removed, and then of course the inquiries ran in every diiection and facts were obtained at once. There were enough runners there to run Washington City about that time. Q. Can you state where the liquor was found, all except the "lost S. Mis. IIG 2 18 COLLFCTION OF INTERNAL REVENUE IN tribe"? — A. Yes, sir; it was found about sixty yards northeast of the old Eickett building. f Q. How far from tlie warehouse from whence it had been removed '? — A. Between four and six hundred yards. Q. How was it found ? — A. It was buried there. It was a very pro- lific piece of ground ; seventeen barrels of whisky were found in ground that was plowed the day before. Q. It was a quick crop ! — A. Yes, sir ; I cannot raise liquor that way. Q. How far was this from the collector's office in Statesville? — A. Just about a mile and a half. Q. Were any of the officers from the collector's office present in help- ing to make the search — Chief Deputy Coite or Collector Mott ! — A. I saw Mr. Morrison, Mr. Gill, Mr. McLeer, and Mr. Brooks there that evening. Mr. Gill lold me that the second probe he made into the ground he found a barrel of whiskj^, and finding one he found seventeen. Q. Did any storekeeper or ganger ever tell you that he could not get an assignment to act as storekeeper unless he agreed to divide with the distiller ? — A. One man told me he did not ex])ect to get any position, from this fact, that he would not divide his salary with anj- man. Q. Who was that? — A. His name is Thomas Osborne, a brother of John Osborne. Q. Do you know how long he had been a storekeeper without assign- juent! — A. He had just come and took charge of Daniels' still-house; ■whether they had commenced running out the house when he came there I am not able to say. It ran out and consequently he went away, and I do not know why it was that it did not start up any more with him. Q. He told you he did not expect to get any position because he would not divide? — A. Yes, sir; he would not divide with any man, and did not expect to get anything. There was also a man — a cousin's son of mine — by the name of Barkley ; they call him E. Barkley . I heard him and Frank Caldwell talking. He said he would not divide, but where he boarded with a man he would be very liberal in i)aying his board. Q. Was he a storekeeper, too ? — A. Yes, sir. Q. Do you know what was the general price of corn whisky in that -country ? — A. The price varied from one dollar and fifteen cents to a dollar forty and fifty cents a gallon by the barrel. I saw it go off at a dollar ten. 1 was on five or six l)onds, and very often it took me about ]ialf the time to be signing bonds. (^). Did you ever hear any of the distillers say anything about making the storekeepers divide their pay Avith them? — A. I have heard Mr. Freeze say that when he started up that time they rather ran in on the boys; tliat Mr, J. X. Sunnners was willing to divide with him. They liad a sijuabble over it. He had not got his assignment, and he had just tliiown out his sloji before ]\li'. INlcLeer and Mr. Crawford got there. J told liini 1h' onght jiol to iiiii any risk with my name on his bonds. (/. What did you say about Mr. Summers? — A. Mr. Freeze told me Alt-. Irad agreed to (livi. \\;is he slorekeejiei- and ganger? — A. Yes, sir; he liad voted the THE SIXTH DISTRICT* OF NORTH CAROLINA. 19 Democratic ticket, and consequently lie had to go np. It was fre- quently said tbrough tlie neigliborliood that all that had ^oted that way would go up. A great many Democrats got in there for three or four dollars a day. Bill Dulan never got much patronage. Q. Never got assigned to much work ?— xi. No, sir. James F. Watts, lie refused to divide and refused to help make mashes. Q. What do you mean by that? — A. To assist the distiller in making mashes. Q. Do you know anything about political assessments levied upon the ofticers of the Ee venue Department? — A. Mr. Dulan told me lie was notified to that effect, and John Kerr Bailey told me that they had been assessed and refused to pay it. At least Bailey did. I think Dulan did the same. Mr. Bailey told me that he never paid anything towards it. Q. What became of him ?— A. I do not know whether he resigned. He is in Lexington, N. C, in a tobacco factory. Q. Out of the department now f — A. Yes, sir. By Senator McDill : Q. Where does this man Dulan live ?— A. In Statesville Township, 3 miles from Statesville, on the Western North Carolina Kailroad. Q. His name is William M. Dulan f — A. Yes, sir. Q. You stated that Mr. James F. Watts refused to divide and help make mashes. Do you know that of your own knowledge ? — A. That is just what he told me. Q. You don't know personally about that ? — A. No, sir ; I don't. Q. Where does this man Summers hve?— A. I think he lives in Sharpsburg Township, in North Iredell. Q. Mr. Freeze, the distiller, told you that Summers was going to di- vide up ? — A. Yes, sir; when he started up on his own responsibility. Q. Where does this El Barkley live?— A. He lives in Catawba County. Q. You heard him talk with a man named Caldwell, and he told Caldwell that he would not divide, bnt where he boarded he would be liberal in paying his board ? — A. Yes, sir ; I heard him say that in Colo- nel Sharpe's office. By the Chairman : Q. He is the general storekeeper ? — A. Yes, sir. By Senator McDill : Q. I want to know if, at times, there was not a good deal of disagree- ment between storekeepers and distillers ? — A. Yes, sir. Q. They are a little inclined to quarrel about their work f — A. Yes, sir ; as a general thing most of the storekeepers were not lazy, but in- dustrious men, and did not mind to put their hand to the work. When one oi' these lazy ones came he did not stay very long. Q. He wonld not help to do certain things the distillers wanted done, such as making mash?— A. Yes, sir; it is a very heavy job. Q. Do you know whether in the discharge of his duties, he ought to help make mash ? — A. He had no right, according to my understand- ing of tlie law, to do this, but as a favor — a friendly thing — he did it. Q. And this difficulty between these men often came from something of that kind? — \. That was my understanding. Q. Mr. Daniels liked to have*^ those kind of men as storekeepers who would help about these things ?— A. That would put their hands to work. 20 COLLECTION OF INTMINAL REVENUE IN Q. I suppose, of course, it is tlie fact that if a distiller wanted to quit work, by giving notice, he could do so ? — A. Yes, sir ; any distiller could do that. Q. So that if a distiller had a storekeeper that did not suit, if he could not get rid of him any other way, he could just quit work I — A. Yes, sir ; suspend at once. Q. And the storekeeper had to go away and take his chances of get- ting a new assignment, if the old distillery did not start up again ? — A. Yes, sir. M. C. Williams sworn and examined. By the Chairman : Question. Where do you reside ? — Answer. Statesville, N. C. Q. What is your business at present ? — A. I am clerk of the inferior court of Iredell County. Q. Are you a son of Mr. James Williams ? — A. Yes, sir. Q. Will you tell me if he has ever told you anything about assess- ments being levied upon him to support Eepublicau newspapers 1 — A. Yes, sir ; I have heard him say something about paying for the running of a newspaper. Q. What newspaper was it ? — A. I don't remember. It has been three or four years ago since he told me that — it was somewhere out on the Western 2^orth Carolina Kailroad. Q. What did he say to you — the substance of it ! — A. He did not say very much to me about it. I heard him say that he had to pay something for the running of a paper. Q. That was over and above the assessments for the Presidential campaign that these other witnesses have spoken of? — A. I think it was during the campaign for Hayes. Q. What position did your father hold in the Eevenue Department f — A. He was a storekeeper at that time. Q. What position does he hold now ? — A. Storekeeper and ganger. Q, Where is he on duty at present? — A. In Iredell County, about six miles from Statesville. Q. Do you know anything about these political assessments that have been spoken of here? — A. I don't, sir; I have heard it said that there were assessments, but know nothing of my own personal knowledge. Q. Do you have any idea of the amount raised for that purijose per annum? — A. I never have had any connection with the revenue my- self. Q. Do you know anything about this alleged division of salaries be- tween the storekeepers and distillers? — A. I have heard it said that tliey divided; I know nothing delinite about it. ('l. Who did .you hear say that; I mean did you hear any revenue of- ficer or (lislilh-r say that? — A. Yes, sir; I heard a distiller say he could get stoickccixMs Ibr half ])rice. Q. What distilh-r was that?— A. D. F. Stevenson, of Iredell County. Q. That he coiihl get slorckec'pers for half i)rice? — A. Yes, sir. Q. Do yon know whcllicr lie did so get them or not ? — A. 1 do not. Q. \'on hcai'd what he said lie couhl do, not what he had done? — A,. Yes, sir. if. Do yon know who were storek('t'p(!i's at his distillery? — A. Williamr \V('stnioi('hiii«l. Q. Jlow hnig did he stay ? — A. 1 don't know, sir, how long he staid. THE SIXTH DISTRICT OF NOETH CAROLINA. 21 Q. Do you know of any changes there '? — A. I don't think there was any change; he suspended atthat place and put up at another place. Q. With the same storekeeper? — A. Xo, sir; I think he has a dilTer- ent storekeeper now at the other place. Q. Do you know anything about the requirements made on the fQ- cers as to voting by the collector of the district? — A. No, sir. Q. Do you know of any man discharged for not voting to suit t col- lector ?— A. I think I heard it said that J. K. Bailey had been disc'^ rged. Q. That is the gentleman spoken of by Mr. Barkley! — A. Yes, sir. Q, Do you know of any one who failed to get assignment because they would not agree to vote right? — A. No, sir. Q. Do you know the Rev. Mr. Fesperman? — A. I do know him. Q. Do you know that he was appointed as storekeeper and ganger? — A. Yes, sir; I heard he was. Q. Did he ever get any work? — A. I don't really know. Q. Have you ever heard him say anything about it?— A. No, sir; never did. By Senator McDill : Q. Did you ever have any talk with this man Bailey, as to the reason of his discharge ? — A. Never did ; just heard it. Q. You just heard it outside ? — A. Outside ; yes, sir. Q. It may or may not have been true, so far as you know ? — A. I don't know whether it is true or not. I don't know anything as to the truth of it. Q. Did you say you heard Mr. Stevenson say he could get store- . keepers at half price ? — A. I heard him say it ; that he could get store- keepers at half price. Q. Where did Mr. Stevenson run his distillery at that time? — A. Atthat time I don't think he was running at all. He was talking about run- ning and what he could make. Q. He did not say he had got them at half price, but could do it ? — -A. I don't think he had any storekeepers at that time ; he was just talk- ing about starting up a distillery. Q. That was one of his calculations, that he could get the storekeepers at half price ? — A. Yes, sir. Q. And he expected to derive some profit from that; whether he suc- ceeded in that, you don't know I — A. I don't know. Q. You say that you do not yourself know of any fact with regard to storekeepers and distillers dividing. All you know is what you have heard ? — A. All I know. Q. Your father is a storekeeper ? — A. Yes, sir. Q. And was such, away back in the time of the Hayes campaign ? — A. I think so. I am not positive. Q. He told you he had to pay something to support a newspaper ? — A. In Western North Carolina ; yes, sir. Q. Did he tell you the politics of the paper ? — A. In the interests of the Republican party. Q. Did he say any one had requested him to do that, or that he had done it '? — A. I don't remember just exactly what he did say. I don't think he had to pay. I think he was just anticipating he would have to pay. Q. You don't know whether he ever paid or not ? — A. No, sir. Q. He had anticipations that he would have to pay something to sup- port a newspaper ? — A. Yes, sir. Q. Was it the anticipation he was dreading, the anticipation that he 22 COLLECTION OF INTERNAL REVENUE IN would have to pay, or expecting to do it ? Did he express himself on that point ? — A. t don't know that he expressed himself 5 he was think- ing he would be required to pay. Q. He did not say whether he was willing or not ? — A. Willing or not. Q. You don't know whether he ever did or not ? — A. No, sir. ^Y. G. Bogle recalled and examined. By the Chairman : Question. Do you know anything about this check that Colonel Eliason wanted from O. M. Barkley ? — Answer. I heard Mr. Barkley speaking of it the day before I started up here. Q. AThat did he say? — A. He and J. B. Howell and myself were talking in regard to this committee, and he mentioned this check that Colonel Eliason wanted from him. He said he was turned oft' because he would not give Colonel Eliason the check. Q. The check for his monthly pay ! — A. Yes, air. Q. Colonel Eliason was the distiller whom he was storekeeper for ? — A. Yes, sir. Q. He asked him for his monthly check ; he refused to give it to him, and he was discharged for that reason ? — A. He said so ; yes, sir. By Senator McDill : Q. wiio was that !— A. O. M. Barkley. Q. You say he has been discharged ? — A. I don't know whether his commission has been revoked or not; he was discharged from that dis- tillery. Q. Did the distillery stop, or was he assigned somewhere else ? — A. No, sir; another storekeeper was assigned in his stead at that dis- tillery. Q. You do not know the reason for it, except as Mr. Barkley stated it I— A. That is all I know. Q. It may have been there were other reasons ? — A. Perhaps there were ; I only know what Mr. Barkley said. Q. Where does Mr. Barkley live f — A. In Statesville. By the Chairman : Q. Do you know whether Barkley complained to the collector or not of that treatment ? — A. I do not, sir. Q. Do you know whether he informed the collector of that arrange- ment? — A. No, sir. Q. Eliason, liarkley, and the collector are all in the same town ? — A. Yes, sir. Adjourned till June 10, 10 a. m. Washington, D. C, June 10, 1882. 'i'lic coiiiiiiittee met at 10 a. m. .]. A. Clark sworn and examined. Ily tlie Chairman : (JtiU'slion. WJMMc do you resi(l«3 .' — Answer. In Atlanta, (la. Q. Were you ever at one time connected with the collection ofiice of tlie sixth North Carolina revenue district? — A. Yes, sir. Q. When? — A. I was connected with it up to May 15, '74. THE SIXTH DISTRICT OF NORTH CAROLINA. 23 Q. In what capacity ? — A. Chief clerk. Q. lu the collector's office? — A. Yes, sir. Q. Can jou tell us anything about the manner that you observed^ while yon were connected with the office, in the taking- of vouchers for the pay of any officer, or employe, or for any extra service whatso- ever ? — A. Yes, sir. The government allows certain men to do certain parts of the business. We had no assessors then. The deputj" collect- ors were in the employ of the collector at that time, while I was there. The storekeepers and gangers got their pay direct from the Treasury Department ; he got the warrant as disbursing agent, and then he dis- bursed the money according to their vouchers and days of service. Q. Will you explain as to the manner in which those vouchers were made out ! — A. The storekeepers and gangers had a form to make them on, to be approved by the collector; the same form as the deputy collectors. They all had to be made according to the work done and the county assigned to them — the division of the district to which they were assigned. Q. What I want to know is, was there, or was there not, a habit or custom in the office to make out vouchers for more service than was actually rendered? — A. At one time they did so. About the time of the change when the assistant assessor was taken away. The office was abolished. ^Xot knowing how many men were to be allowed, I myself made vouchers for several men and got them to sign them. They did not draw any pay unless we got something for them. Our letter of allowance had not been sent on. And we took the vouchers of several men. We did not know what we would get. We had to reorganize the thing then; half the officers had gone out. We expected to get some- thing for them . The men we could get, and, in that mountainons country y. we needed them. The understanding with the men who took the special service was, that if we could get any compensation allowed, they would be appointed, such as the doctor or collector saw fit. Q. You say that you frequently made vouchers before the service was rendered? — A. No, sir. Q. Who made out the vouchers ? — A. At the reorganization, when the office of assessor and assistant assessor was abolished, there was much more work for the deputy collectors to do. We appointed several of them, and gave them commissions as special deputies to take reports of distilleries and tobacco manufactories — the different reports for the dis^ trict. Some of them we took vouchers for, and made up the amount as much as we could in order to get an allowance to employ the men to do the work. Q. You took vouchers for as much as you could? — A. Yes, sir. Q. You mean before the service had been really rendered ? — A. We were running the district then, and had no appropriation made for the office — after the change. After the assessor's office was abolished. Q. My question was, whether at any time there was a custom to take vouchers for more than was due, and you answer in this way. — A. That is the only time I remember; that was the time of the reorganization, and we did not know what we would be allowed. Q. Then you took vouchers for what, for precisely what was due ! — A. We took vouchers from the men who helped us to do the work, in order to make up an estimate to see what would be allowed. Q. Was the amount all allowed ? — A. Xo, sir. Q. Had you vouchers then for more than was allowed? — A. Yes sirj we took them in order to get the estimate. Q. How much did the government allow? — A. I don't know, sir. 24 COLLECTION OF INTERNAL REVENUE IN Q. You cut the voucliers dowu?— A. They only noted the men al- loTred in the account we gave. I dok't know how many deputies there were at that time. It has been eight V^ars since I had anything to do with the office. Q. Can you give me the names of any of the special deputies'? — A. K. W. Lillington and Mcintosh. Q. Did you not take a number of special deputies into office at that time? — A. No, sir. We took about the number of deputies we thought we would require ; that the collector ought to have. 1 don't remember the names. Q. You took the vouchers of as many special deputies as you thought you ought to have? — A. Yes, sir. Some of those men were drawing regular pay as deputy collectors. Q. How long did that custom prevail ? — A. Only for one quarter. Q. Why was it stopped? — A. The letter of allowance came on, allow- ing so much as salary for deputies and so much for assistant clerk. Then of course we had to make them according to that. Then they made a new form. A man had to make out his own accounts. Q. Was there not an investigation of that matter by a special reve- nue agent? — A. Yes, sir. Q. Was it not stopped in consequence of that investigation ? — A. No, sir. A new form came. The collector went out. Q. The collector was discharged on that account ? — A. I suppose so, sir. Q. The present collector ? — A. Xo, sir ; Dr. Mott. Q. In consequence of that investigation ; who made the investiga- tion ?— A. Mr. Crane, Mr. J. C. Wheeler, and Fred. Lutz. Q. TMio succeeded you as chief clerk ? — A. Mr. Horah. Q. When was Mr. Henry Cowles clerk ? — A. Never, sir. Q. I will ask you if you did not say to Henry Cowles, or to some one, in justification of this habit of taking vouchers for more than was due, that such was always the custom, because the government cut them down anyhow, or you took them for more than was due in order to allow the government to cut them down ? — A. I was clerk of the fourth district, and I went to Statesville in order to learn them. Mr. Cowles was then expecting to be clerk for Dr. Mott. I went there to learn Mr. Cowles, and did assist him in running the office. In the fourth district we took voucliers from the deputies for different amounts, according to the men, and, generally, hardly had any record for it. The collector hired them as cheap as lie could, and allowed so much for it, and I may have remarked to Mr. (Bowles it made no difference with our accounts then (at that time we had no regular form, just a little printed form); that the govern- ment ouglit not to have any record for it ; that it would make no differ- ence; might make them for 8l,(H)() a month ; it did not amount to any- thing, only to ])oi]it out the men we might need. If anything wrong, the df] III It iiM'iit (;onld correspond with him. 1 might have made that remark to Ml'. Cowles. (). Which ]Mr. Cowles was that '. — A. 1 don't know. I expect it was Ilcni V. (}. \()i\ were 1 here to Icain cxciy one of them ? — A. IMr. Henry Cowles was soon after appointed eleik of the <;(>nrt. (^. Do yoM know of any other cases than those you lune mentioned where voiKiliers lor a greater anionnt were made out than was really due .' — A. No, sir; I kn(»w no otliei'. ^). Do you I. Did you tell him about how it was? — A. Yes, sir; the best I conld. (}. Von Just told him yon were making up an estimate to get your al- lowance '. — A. 1 think yon may be mistaken. Mr. Crane's duties were looking after the distilleries and starting them up running right. Mr. W'JH'cier was tlKucgnlar examiner of tiie books and records of the office. (}. Had you ever had a talk with Mv. Wheeler alxmt it ? — A. Yes, sir. (}. Wiien he asked you about it, did you tell him how it was done, and what it was Cor, just as you liaxc lold ine ? — A. Yes, sir; as near as I can reirieuilier. (}. Was it (ieci(|(Ml l»y tlie onice here while you were chief clerk ? — A. (^li, yes, .sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 27 Q. They made a new form t — A, And reorganized the district entirely while I was clerk ; made a new form for the deputy collector to swear to and make out his account. Q. That old form was not a sworn form ? — A. There was a place for a man to swear, but at the same time we did not swear each other, but pnt their names down. Q. It was irregular and informal '? — A. Yes, sir. Q. Yon say that Dr. Mott was removed from the office on account of that ? — A. On account of something ; I do not know. Q. How soon after that was he removed from office ? — A. I think in November, '74. Q. The cause of that removal you do not know ? — A. I do not know. Q. How long was it after this estimate f — A. About a year, or maybe more. Q. How long after the special agents went down there ? — A. They were there oif and on all the time. Q. You say yourself that you had no knowledge of vouchers being given for more than men got, except this case f — A. Except the case mentioned. Q. You know this man Eamsey, do you ? — A. Yes, sir. Q. What was he ? — A. A deputy collector. Q. After he went out. Dr. Mott sued him for money he claimed he was in default of? — A. Yes, sir ; for money collected and never paid in. Q. And in making up his answer in defense he and his lawyers pleaded as an offset that Dr. Mott owed him $25 a month ? — A. I think more than he had been paid. Q. Of the truth of that you don't know anything ? — A. As to the truth I was a very important witness in that case. Q. What was the fact ? — A. The fact was that he had been paid up the money that was due. We had a letter allowing us to hire so many deputies at certain price, and the collector could not give any more unless out of his own salary. Q. He paid all he had been allowed ? — A. Yes, sir. Q. So his claim was a false claim f — A. Yes, sir. Q. And so it was decided ? — A. Yes, sir. Q. I mean in the suit ? — A. I think so ; I think the Auditor did decide against Ramsey. By Senator Mitchell : Q. You say these vouchers were made out ; were they vouchers that were presented in the regular account of the 'collector, or were they simply presented in his application for an allowance ! — A. Presented regularly in his account. Q. In the settlement of his quarterly account? — A. Ko, sir; in the settlement of his quarterly disbursing account they were presented, but I can hardly explain that unless I had a form here to show that. Q. Is the collector allowed to present a voucher of that kind without a previous allowance by the Commissioner of Internal Keveuue ? — A, He was at that time, sir ; not now; it is changed. There had been no allowance after the reorganization at that time. Q. I understand you to say that these vouchers, as you call them, were ouly presented for services rendered by some persons designated, by the collector ? — A. Yes, sir. Q. To act under the revenue law ? — A. He put a great many of these in in order to get a good many deputies ; put in as many as he could. Q. What was the object of employing so many? — A. They had a bad 28 COLLECTIOX OF INTERNAL REVENUE IN district up there, aud the work liad nearly doubled itself, and then the oflHcers had been diminished half. They needed more men. The col- lector had the duties of both the offlces. Q. What was the understanding with these deputies when they were selected or designated ? — A. The understanding was that if we could get any pay or allowance for them they should be employed and paid regularly. Q. Then that was the understanding or the aiTangement ; there was no obligation really at that time on the part of the collector to pay any certain sum to them ? — A. Only to the regular ones. Q. Their appointment was authorized ? — A. Yes, sir. Q. But as to those you now speak of there was no contract made and no assumption of the right to make a contract by the collector for any certain sum, but the vouchers were made out for certain sums, with the understanding that they were to be presented, and, if allowed, to be liaid ? — A. Yes, sir; that is what I think about it. Q. So that really, although they were presented as vouchers in the account of the collector, it was well understood between the collector and these persons that the allowance would depend upon the action here at Washington ? — A. Yes, sir; entirely. By Senator McDill : Q. Who was the Commissioner of Internal Revenue at that time? — A. Douglass. Q. Before Mr. Eaum's time? — A. Yes, sir. Q. And that form was the one used by Douglass? — A. Yes, sir; the same form was used by Delano; used in his time while I was clerk in the fourth district. I think the same form had been used always up to that time. Q. In a statement that you made to Senator Vance there was some- thing that you said to Mr. Cowles. Mr. Cowles was expecting to be chief clerk after you went out? — A. Expecting to be chief clerk at the time Di'. Mott was appointed collector. (^. That is, reappointed? — A. No, sir; when first appointed I went to Statesville in order to straighten him out and start him. Q. That was at a still earlier period? — A. That was in '72. (^. You had been in the revenue service in the fourth district? — A. Yes, sir. Q. And Dr. Mott was expecting to be api^oiuted, and make Mr. Cowles his clerk? — A. Dr. Mott was appointed. I Avent and helped to fix up his bonds, also the collect<«''s of the fourth, when I went to start him ont right. Mr. Cowles got a])])ointod soon after I got there as clerk of the I'nitcd States court, and did not want the oflice. (i. \ )ining that time, although you do not recollect, you may have told him wliat was the custom in the fourth district in regard to these vouchers? — A. 1 may have done so. (}. 'I'liat wouhl have been the custom that existed in the fourth dis- trict j)ri()r to the year '72? — A. Prior to that time, yes, sir. (^>. That is, yon made out these vouchers for a larger sum than the actual amount, and, if notalloAved, did that create an obligation on the ]»ait of the (;oll<'ctf)r ? — A. Xo, sir. The dei)uty hjid to take whatever he got. IIer's, and some time iit W. M. Cooper's. Q. Is he a brother of T. N. Cooper's? — A. They are brothers. I was a shoit time at. I. K. Combs', in Wilkes County. Q. J low long were you with the two Coopers? — A. I don't recollect. I expect I was off and on with both of them nearly three years. I was sometimes witli on<', of them and sometimes with the other, and some- limes witli ( 'oI\crt. (). How long altog<'tiier weie you in tlie servii-e in that capacity? — A. I <<)nhl not tell yon exactly. I first went in in 1873, but have not had anylliing lillin Beard, one of Samuel H. Wilt'v's d('])uties. I\lr. Holmes stated that he was commissioner at the time, and thought he issued a warrant for Thomas N. Cooi)er, but he liad lost the records, and consequently I did not get to see them. So I did not stop there, and 1 sent to Mr, Larkins, clerk of the court of Salis- l)urv before the western district was formed, now residing in the east- ern . l^^lilt, aud iu tlie 'X'>d year of the ludependence of the United States of America. KMdiuseiiM'iits oil tlic back : Executed ;in.l Im.ihI liinl -.'ltd .Maivli, ISCH. MOSES L. HOLMES, [seal.] United States Commissioner. D. R. GOODLOE, (/. »S'. Marshal, By M. R. CHAFFIN, Ihpniii V. S. Marshal. Contiiiui'd to May I.'itli, Hi;'.*. Coiil iiiucd Id .'>th .June, '(i'.l. THE SIXTH DISTRICT OF NORTH CAROLINA. 37 W. C, Morrison recalled and examined. By Senator McDill : Qnestion. In yonr evidence ^iven the other day, Senator ^'ance asked yon this qnestion (qnoting) : "Did you hear anythinjj;- of it afterwards!" referring- to the money j'on had contributed. Your answer was, " Xo, sir ; nothing more than I got a letter from Washington thanking me for the sL*.") 1 had sent them." The Senator said, "You got a letter from Wash- ington '" You answered, "Yes, sir." "Q. By whom was tliat letter signed ?" Y'ou answered, " By Commissioner Raum, I think." I want to ask you if you think you are correct about that letter being signed by Commissioner Kaum ? — Answer. I did not say it was signed. Q. You say you thought it was signed by Eaum ? — A. I am not j)osi- tive whose name was to the letter. By the Chairman: Q In your aflidavit you said the letter was from ]Mr. Jewell. — A. I do not remember whose name was to the letter. By Senator McDill : Q. You only remember that a letter was received from Washington acknowledging receipt of 825, but don't remember the name signed to it, and do not wish to say it was from Commissioner Eaum ? — A. Yes, sir. Adjourned until Thursday, June 15, 10 a. m. Washington, D. C, June 15, 1882. The committee met at 10 a. m. John Pool, esq., appeared as counsel for Dr. Mott. A. B. Gillespie sworn and examined. By the Chairman : (Question. Where do you reside ? — Answer. Charlotte, X. C. Q. What is yOur age f— A. Thirty. Q. What position do you occupy in the revenue service? — A. Ganger. Q. Y'ou have been a deputy collector ? — A. Y^es, sir. Q. When were you first appointed deputy collector? — A. The first of January, 1877. Q. That was the first time you went into the service ? — A. Y^es, sir. Q. Who appointed you ? — A. Collector Mott. Q. Y'our position is now that of a ganger? — A. Ganger. Q. What is your salary? — A. Five dollars a day wheu employed. Q. And nothing if not emi^loyed, I suppose? — A. Yes, sir. Q. What are your duties as a ganger? — A. To gauge brandy and whisky, and sometimes assigned to special duty by the collector to do various things — to instruct other gangers, and whatever other work he sees fit. Q. As ganger, have you any certain counties or jurisdiction assigned to you ? — A. Yes, sir. Q. What is that jurisdiction? — A. Eight counties, now. Q. Xame them ? — A. A lexander, North Iredell, Y adkin, Davie, Eowan, Cabarrus, Union, and Mecklenburg. I am frequently sent out all over the district, but that is my regular post. Q. You do not combine the office of storekeeper and ganger ? — A. Xo, sir; ganger. 38 COLLECTION OF IXTERXAL REVEXUE IX Q. Those couutie.5 compose your district now ? — A. Yes, sir. Q. What counties composed it in 1880 — two years ago tliis summer';? — A. About that time I was appointed ganger. I was appointed in August, 1880, to the same district. Q. You have mentioned? — A. Yes, sir; but with the understandiug that I am not confined exclusively to those eight counties. Q. Was Mr. William Morrison a storekeeper and ganger in that year — 1880 ? — A. Yes, sir ; as I remember. Q. From whom do the storekeepers and gangers get their pay '? — A. The collector. Q. How are they paid? — A. By the month. Q. Are they paid by a cbeck? — A. A check; yes, sir. Q. On what bank? — A. I don't know. I think it is a Ealeigh bank. Q. You don't know which one in Ealeigh ? — A. Xo, sir. Q. They are paid monthly by a check on some bank in Raleigh ? — A. Paid monthly by a check. I don't know any other way. I am not par- ticularly acquainted with the manner of their being paid. I just see the checks that go to them ; all I know about it. Q. Did you take a check to Mr. Morrison during that year and ask him to sign for the campaign fund? — A. I don't care to answer that. Q. Why not ? — A. I understand there is a law forbidding such things, and don't know how the law is, whether I have violated it or not. Q. Then you decline to answer this question for the reason that it would criminate you? — A. I don't know whether it would or not. Q. It might do it? — A. It might do it. Q. You decline, then, to answer whether you helped to assess or levy any political assessments on the officers or not ?— A. Yes, sir ; I decline to answer. The Chairman. What does the committee say about that? Is that a case where the witness may, at his discretion, decline f Q. (To witness.) Did you ever pay any money yourself for campaign purposes? — A. Yes, sir. Q. How much ? — A. Very frequently. I don't know how much ; don't remember now ; just what I saw fit. Q. Can you not give us an idea of how much ? — A. ' Sometimes 810, sometimes more — considerably more. Q. Did you ever at one time pay as much as a month's salarj' ? — A. No, sir. Q. Do y(ju know of anybody else that paid political assessments, contributions, or whatever they are called? — A. I don't care to answer that either. Q. That don't criminate yon. You are asked whether you know of anybody else that has paid these political assessments. — A. Nothing of my own knowledge. I will not answer it iu that way either. I have known men to ])ay, but can't say anything definite about it. (). Don't y(ni know that regular assessments were levied upon all ollicH'rs on duty in that department for political [uirposes? — A. I know they were rciiuested very frequently to contribute; don't know they were levie«l regularly. (^. Don't yon know that tlie same request was made to each one f — A. No, sir; no means of knowing. (}. That was the general rnU- in that oflice? — A. T don't know that. (,>. And iindcislanding ? — A. 1 don't know; they came through the oilier. (^. When yon wei'c re(|iu!sted to i)ay, don't yon know the statement was made 1(1 \(>H that all had been re(|ne.sted in like manner? — A. No, THE SIXTH DISTRICT OF NORTH CAROLINA. 39 Q. You never heard any ouc acknowledge that this Avas so ? — A. In saying that ? jSTo. Q. What was the understanding about these assessments ? — A. No particular understanding about it. If they were asked, the officers cou- tributed. Q. Was there an understanding that only a few were asked and others not asked ? — A. No understanding about it. (}. Were you furnished with blank checks for this purpose at any time ? — A. By whom ? Q. I did not say. — A. I don't care to answer that. Q. Do you know of any instances where storekeepers divided their pay with distillers ? — A. No, sir. Q. Have you heard of any complaint of that being done in your dis- trict ? — A. Heard it since I came to Washington. Q. You never heard it before ? — A. Heard it as a kind of rumor down there. It is larger here than there — the rumor, I mean. Q. But you had heard of it down there ? — A. Yes, sir ; I had heard of it. Q. Whom did j'ou ever hear speak of this in that district ? — A. I can't call to mind any one. I suppose I heard several, but I don't remember. Q. Can you not give anj^ name ? — A. No, sir. Q. When a storekeeper was selected for a distillery that was about going into operation, were the wishes of the distiller consulted ? — A. I can't tell ; I have no means of knowing that. Q. After having been in the service as deputy collector ? — A. Yes, sir. The assignments are made in the office. I am very seldom about the office. My business is away from it. Q. Don't you know whether the distillers had any say-so about the appointment of storekeepers or not? — A. I don't know that. Q. What have you heard on that subject? — A. I don't know particu- larly that I have heard anything — probalily rumor, is all I know about it. Q. What was the eifect of the rumor, that they had some voice in the selection of the storekeepers or not — the distillers f— A. Yes, sir; some- thing to that elfect. Q. Can you give me the names of anybody A. No, sir ; can't give any names. Q. Can you not tell us any distiller that ever said anything to you about it ? — A. No one that ever said anything to me about it. Q. Or any storekeeper? — A. No, sir; not that I can recollect. I know that distillers did not, and can't recollect about the storekeepers saying anything. Q. Do you know where the money raised by assessments went ? — A. No, sir. It went generally to the executive committee, the Congressional committee, or something of that kind. I mean that was where it was supposed to go. Q. Do you know what purpose it was applied to f — A. I don't ; no, sir. Q. At this time, about which I have asked you, and you declined to answer, were you a ganger then, or special deputy — in 1880? — A. I was appointed ganger the latter part of August, 1880; had been deputy col- lector up to that time. Q. It was not a part of your duty to pay off the officers, or anything of that sort? — A. No, sir. Q. I will ask you if you got some blank checks about that time, and, if so, who gave them to you ? — A. I don't care to answer that. The CHAIR3IAN. The mere fact of receiving some checks from some- body would not criminate you, I don't suppose. 40 COLLECTION OF INTERNAL REVENUE IN Mr. Pool. I should think that woukl be looking very strongly in the same direction, receiving checks for the purpose of doing this thing. The Chairman. He has not said that. Q. (To the witness.) Did anybody offer you any checks — you need not say you received any — any blank checks ? — A. I don't care to an- swer that either. Q. You think that the action of somebody else would criminate you ? I will ask you if Dr. Mott or his chief clerk did not give you, or offer you, a lot of checks at the time of which I speak ? — A. I don't care to answer that. The Chairman. What do the committee say — shall he answer that question or not ? Senator Mitchell. Section 6 of the act of August 15, 187G, reads : That all executive officers or employes of the United States not apiiointed by the President, with the advice and consent of the Senate, are prohibited from requesting, giving to, or receiving from any other officer or employ^ of the government any money or property or other thing of value for political purposes; And any such officer or employe who shall offend against the provisions of this sec- tion shall be at once discharged from the service of the United States; And he shall also be deemed guilty of a misdemeanor, and, on conviction thereof, shall be lined in a sum not exceeding five hundred dollars. (P. 245, Supplement to Revised Statutes.) The Chairman. What statute fixes the time within which prosecu- tions may be had for such offenses ? Senator McDill. Section lO^-t of the Eevised Statutes of the United States says : No person shall be prosecuted, tried, or punished for any offense not capital, except as provided in section ten hiindi'ed and forty-six, unless the indictment is found or the information is instituted within two years after such offense is committed. Section 1040 says: No person shall be prosecuted, tried, or punished for any crime arising under the revenue law, or the slave-trade laws of the United States, unless the indictment is found or the information is instituted within five years next after the committing of such a crime. So, I suppose, five years wonld be the limitation. Senator Mitchell. Here are sections 103 and 859 of the Eevised Statutes : Section 103 (reading) : No witness is privileged to refuse to testify to any fact, or to produce any paper, re- specting wliich he shall be examined by either house of Congress, or by any commit- tee of either house, upon T-he ground that his testimony to such fact, or his produc- tion of such paper, may tend to disgrace him or otherwise render him infamous. It refers to section 859, which reads : No testimony given by a witness before either house, or before any committee of rdther house of Congress, shall be used as evidence in any criminal proceeding against liim in any court, except in a prosecution for perjury connnitted in giving such testi- mony, iint an official paper of record produced by him is not within the privilege. Tlic Chairman. Suppose we reserve the question. L. \V. Brvan swoi'ii and exniniiicd. Ily tiic Chaiijman: (,)Mesti()M. Wlicre do youlive .' — Answer. 1 live in SurryCounty, North CaroliiKi. (}. .\i(' you a distiller? — A. Yes, sir; 1 ;iin running a distillery. (]. Wlieie is your distillery located ?— A. In Yadkin County. (,). In the sixtli (list ri(;t ?~A. Yes, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 41 Q. How long- have you beeu distilling! — A. I commenced about the first of April, 1880, I reckon. Q. Whom have you had for storekeepers? — xV. I had a man by the name of Shore. Q. Any one else ? — A. Yes, sir; a man by the name of Captain Stevens. Q. Are those all ?— A. A Mr. Vestal. Q. Did either of them ever divide their pay with you ? — A. They did not; no, sir. Q. Neither of them ever divided their pay with you? — A. No, sir. Q. Do 3'ou know of such a case, where any of the officers divided their pay with the distillers ? — A. I do not. Q. Did some of them offer to divide their pay with you? — A. No, sir; none of the men that storekept for me. Q. Did any storekeepers that did not "storekeep" for you ever oft'er to divide with you ? — A. No, sir. Q. Sometimes the storekeepers, being unassigned, would be anxious for a job ; that is so, is it not ? — A. Yes, sir. Q. Did any of those out of employment offer to ''storekeep" for you for less than the regular pay and allow you to take the balance? — A. I have had storekeepers come up and say ''they would treat me right," and so on, but I never proposed to make any arrangement with them. The storekeepers I had at the time appeared to be doing their duty, but nothing was said about dividing their pay; did not make that proposi- tion. Q. What did you understand by a man saying he would "treat you right"? — A. I don't know what they might mean, exactly, by saying that " they were willing to treat me right." The law prescribed the way they should treat me, but they did not make any — I encouraged nothing of that kind. Q. Did the pay of these storekeepers, or any of them who kept store for you, ever pass through your hands ? — A. I don't know that it did. Q. Explain what you mean by that. — A. I just mean that I don't recollect that any of their funds passed through my hands. Your ques- tion was : Did any of their funds — the funds they received for storekeep- ing — pass through my hands ? "Q. Yes.— A. My answer is, I don't recollect that ever it did. I don't know that I had any transactions. I don't know; it might; I could not say. Q. AVbere did these men who kept store for you board ? — A. They all boarded at their own homes. Q. None of them boarded with you? — A. No, sir; I lived in the fifth and they lived in the sixth. None of them boarded at my house. Q. Did you not tell Colonel Armfleld that this man Vestal had di- vided with you ? — A. I did not. I have not seen Colonel Armfield since Vestal storekept for me. He was only three months storekeeping for me. I stopped some time in November. Maybe he was not there a couple of months. Q. Did you not tell Colonel Armfield that some storekeeper had di- vided his pay with you ; that you received his check, and sometimes you would give him the odd 81 of the 8101; and sometimes you would keep that amount and give him $50, or sometimes you would keep that $101 and give him 850 ? — A. I have no recollection of telling Colonel Arm- field any such thing. Q. It was in '80, during the campaign, when Colonel Armfield was at your house? — A. Yes, sir; it was. 42 COLLECTION OF INTERNAL REVENUE IN Q. You have no recoUectiou of telling biui any «ucli tbing as that? — A. 'So, sir. Q. And that you had storekeepers to offer you a dollar a day, but that the man you had was so "biddable," and did what you wanted him to do, that you hated to discharge him. You say none of that conver- sation took place ? — A. I have no recollection of anything of that. Q. Can you tell me anything about the custom of storekeepers in that respect — of dividing with distillers? — A. No, sir; I cannot. Q. Do you know anything about the fact or the system of making two or three small stills instead of one large one, for the purpose of enabling distillers to run small distilleries by the help of the store- keeper's pay ? — A. Do I know about the fact ? Q. Yes. Do you know if such a custom was in vogue; that they divided a twelve-bushel still, for instance, into three four-bushel stills for the purpose of enabling storekeepers to help the distiller along by dividing his pay with them ? — A. No, sir. I know there was a law passed that they could run a four-bushel distillery. Q. Do you know of any cases where men divided their stills and made two or three out of one ? — A. No, sir. I know of those that were run- ning a "distillery, and then would put up another. I know one or two instances of that kind in that district. Q. Do you know of cases where men paid extraordinary prices for board — the storekeepers — in boarding with the distillers? — A. Well, I don't know that I do — that I ever knew such a thing. Q. Did you ever hear a distiller or a storekeeper say so ? — A. No, sir, I don't know that I did; but it is outside rumor that 'they did do such a thing, but I don't know any instance to cite to you; just mere rumor, such was the case. Q. Can you give me the names of anybody that said so? — A. I don't know that I could. Q. Do you know anything about assessments being levied upon offi- cers for political purposes ? — A. I have heard a good deal of rumor that there was such going on. As to my i^ersoual knowledge of it I don't know. Q. Did you ever hear any storekeeper say he had been assessed, and if so. who? — A. No, sir. I don't know that I ever heard them say they had been assessed. I have heard them say they had contributed. I don't know how much; would not recollect now how much. Q. Can you give us the names of those who said they had contrib- uted ? — A. I don't knoAvthat I would recollect. 1 have heard them fre- qnently say thev would give so much for campaign purposes. Adjourned till 10 a. m., June 17, 1882. AVashington, June 17, 1882. Tlie cojiimittee met at 10 a. m. W. C. Morrison recalled and examined. Jiy tlie Chairman : (^Micstion. Ill your oi'igiiial examination you stated that ]\lr. Gillespie ])r»'S('iit('d yon aciieck, which he asked y(m to indorse, as a contribution lor p(»liti(Ml jnn]»oses? — Answer. Yes, sir. <,>. Was if filled out mIk^i you indorsed it? — A. No, sir. ^>. How much was if afferwards filled up for? — A. The check for that month I never g(»f — llie $1(>S, THE SIXTH DLSTRICT OF NORTH CAROLINA. 43 Q. Do you know tlie bank tiiat check was diawn on.' — A. The Kaleijili National, 1 think. Q. What oliice did Mr. Gillespie hohl when he presented that check ? — A. Deputy collector. Q. He was not a disbursing agent of the department; it was not his business to pay the officers, or anvthiug ? — A. No, sir; not that I know of. Q. AYas that the bank that the checks for your pay were usually drawn upon? — A. Yes, sir. Q. What Avas the understanding with the officers as to what would T)econie of you if you refused to give this contribution '? — A. Nothing at all that I know of, sir. Q. Y"ou don't know of any penalty that would be visited upon you ? — A. No, sir. Q. Don't you know in fact that some were di^scharged, as they de- clined to give the money ? — A. No, sir. Q. Was not Mcintosh discharged because he declined ? — A. I don't know, sir. Q. Have you not heard him say so ? — A. No, sir. Q. Was it not frequently the case that they failed to get any assign- ment to duty if they declined to contribute? — A. Some were out and some were in. I don't know whether that was the cause of it or not. Q. Was it not generally understood that if any of them voted ♦the Democratic ticket they would be discharged? — A. I don't know, sir. Q. Do you know of any who were said to be so discharged ? — A. No, sir ; not of my own knowledge. Q. I asked you if you knew of any that were said to have been dis- charged in that way ? I believe you said in your first examination that Mr. Price and Mr. John Kerr Bailey were so discharged. — A. I have heard so. Q. Have you not stated to a gentleman, since you have been in this city, that you did not intend to say anything except what you were obliged to, but that it was generally understood that the men would be discharged if they did not give these checks ? — A. No, sir; don't know that I said " discharged." Q. What did you say? — A. I said that I had not said anything only what I was obliged to say ; did not say anything about being dis- charged. Q. Did you not say something to a gentleman to the effect that men would bo discharged or fail to get any assignment if they did not con- tribute ? — A. No, sir ; I don't remember saying that. Q. I will ask you the direct question, if you did not tell Mr. M. C. Williams that the understanding among the men was that if they did not pay, notwithstanding it was called a voluntary contribution, they would be discharged or fail to get an assignment? — A. No, sir; I don't think I ever told him they would be discharged. Q. Did you say the other part of it — what did you say to Mr. Will- iams on this subject? — A. I don't remember saying anything about be- ing discharged, on that subject. Q. Did you say anything about what would be the fate of an officer who voted the Democratic ticket ? — A. I don't remember. Q. You deny ever having said anything of that sort to Mr. Williams ? — A. About getting an assignment? Q. Yes, or being discharged. — A. No, sir: I don't remember any- thing about being discharged. Q. What did you say ? — A. I don't remember now. 44 COLLECTION OF INTERNAL REVENUE IN Q. Did yon say auytbing to the eft'ect that if a man did these thiugs, if he woukl either fail to contribute or vote .anything but the Republican ticket, that he would be discharged, or that he would fail to get an assignment to duty, and lose the benefit of his appointment? — A. I said to him that I had heard 3Ir. Price and Mr. Bailey had been turned out on account of voting the Democratic ticket; all I remember about say- ing. Cross-examination by Mr. Pool : Q. I understood you to say that you contributed for campaign pur- poses; did you do so willingly? — A. Yes, sir. Q. There was no constraint init upon you in that respect ? — A. No, sir. Q. You said you heard that some persons, one or two, Mr. Price and perhaps another, were discharged for voting the Democratic ticket ? — A. I have heard it spoken of; don't know it of my own knowledge. Q. Y'ou mean simply as a rumor, or idle talk of some individual whose name you have forgotten ? — A. Yes, sir. Q. Do you recollect the individual who said so ? — A. Xo, sir. Q. That applies only to JNfr. Price and one other ? — A. Yes, sir. Q. How many officers are there in that district ? — A. I don't know, sir. Q. Forty or fifty ? — A. More than that, I guess. Q. I suppose it is a common thing for them to be discharged, now and then ; here one and there one ? — A. Oh, yes, sir. Q. For one cause or another? — A. Yes, sir. (^. And you don't generally hear what the cause is ? — A. jSTo, sir. O. M. Barkley sworn and examined. By the Chair:man : Question. Where do you reside? — Answer. Statesville, North Caro- lina. Q. Are you now connected with the internal-revenue department in tliat district ? — A. No, sir. Q. AVere you at any time ? — A. Yes, sir. Q. From when to when ? — A. Off and on about seven years. (^>. AYhen did you (luit? — A. I quit about two mouths ago, I think it was. Q. You are 7iot in the service now ? — A. No, sir. Q. In what capacity did you serve? — A. Storekeeper and ganger. (^. Do you recollect about the distilleries of Mr. Daniels; how many did lie liave? — A. I don't remember; some four or five in all. (}. Where were they located? — A. Two of them were southeast of Statesville, one was east, I think, and one northwest. Q. J low far were they all from iStatesville ? — A. The nearest about a mile and a half, 1 think. Q. They were all immediately around the town ! — A. Not more than five miles from the farthest. (^. Were you storckceijcr for either of them'? — A. I was storekeeper for Mr. Dani(!]s a f(^\v months, until he sold out. i^. Wiio selectetl yon for that distillery ? — A. I was assigned there by Mr. Coilc. <,>. I)oyou know w Iict li( r Daniels wanted you or not? — .\. T don't ; no sir. If lie did not — at least 1 never heard if he wanted nu' or not — tlier(! was no ol)je(;tioii, and 1 was sent there. (>. Von say yon were removed from liis distillery? — A. He sold it oni. I still sliHil on willi tlie party who bonglit it. THE «1XTII DISTRICT OF NORTH CAROLINA. 45 Q. Who bougiit it? — A. A man by the name of Brown. Q. What was your pay '? — A. Three doRars a day. Q. Did you divide any of it with the dintiller! — A. Xo, sir. I always drawod my own check. Q. Did you keep it all ?— A. I did. Q. Do you kuow of any storekeepers who divided with the distillers ? — A. Xo, sir; I do not. Q. Did you hear any of them say so, either a storekeeper or distiller — A. Xo. I don't remember. I heard it told that parties wanted them to divide and they would not do it. Q. Heard that parties wanted them to divide — who, these distillers ? and the storekeepers refused? — A. Yes, sir. Q. Do you know of any case where the distillers refused to have storekeepers because they would not divide ? — A. No, sir. I don't re- member. I always went along- and attended to my own business. Q. Still you might have heard what was going on in your depart- ment ? — A. I was never there ; away much of the time. I did not live in town and did not pay any attention to that thing then. Q. What distiller did you hear say he wanted the storekeepers to divide? — A. I don't remember now. I just heard it talked; somewhere on the streets, I believe it was. Q. What storekeeper did you hear say he had refused to divide? — A. I can't tell you, because I never paid any attention to it; just heard the remark of some one. Q. Such remarks were very common, and did not strike you particu- larly ? — A. Very common, and paid no attention to them. Q. And you could not be any more specific? — A. Xo, sir. Q. Did you ever contribute anything for political purposes ? — A. Yes, sir. Q. How much ? — A. Well, I contributed for campaign purposes for the President. Q. lu 1880 ?— A. Yes, sir. Q. How much? — A. I don't remember the amount — in a check; for- get how much it was. Q. Was it your month's salary? — A. Y^es, sir. Q. Who asked you for that ? — A. I don't remember now who asked it. I think I gave it to the executive committee. Since then I have sent it to the executive committee. Q. Did not Mr. Gillespie ask you for it? — A. I think he was the first one ever mentioned it to me. Q. Was not the check presented to you in blank, to be indorsed by you? — A. I don't remember whether it was a blank check, or whether it was a check I gave; don't remember which. Q. Did you send it yourself direct to the executive committee, or give it to some one to be sent there ? — A. I left it in the office. Q. In Dr. Mott's office? — A. Y^es, sir; to be sent to the committee. Q. Did you ever get any acknowledgment from the committee for it? — A. I think I did. 1 did of the others; think I did that; don't remem- ber. Q. How many others did you send ? — A. For political purposes ? I gave five dollars now and ten dollars again, and so on. Of course I don't remember; ueverkept any account of it, as we good Eepublicans down there generally do. Q. To what purpose was the money applied, did you say ? — A. Cam- paign purposes, I suppose. I don't know. 46 COLLECTION OF INTERNAL REVENUE IN Q. Yon don't know ? — A. Xo, sir. That is what it was gotten up for. Q. Did .voii understand any of it went to the support of newspapers? — A. I don't know ; guess it was distributed around for different purposes ; can't telh Q. You had some idea what the campaign purposes were, had you not? — A. Xo, sir; I have no idea. I know speakers had to be paid, newspapers published : who was paid I don't know, sir. Q. Do you know when Jim Harris was on the list of storekeepers ? — A. No, sir ; I do not ; that is the first I ever heard of it. Q. Was he not there in the district, pretending to do work '? — A. 1 don't know. I saw him at the office ; don't know what his business was. Q. Y'ou never saw him doing any public work ? — A. I saw him in the office. Q. You never saw him doing any official duty ? — A. I saw him in there writing. Q. Did you ever hear of hear of him having any official duty to per- form? — A. Xo, sir. Q. Did he make any political speeches around there in that campaign of 1880 .' — A. Jim Harris is generally on the stump when any political tiling is going on. Q. AVhere did he speak in that country ?— A. I don't know, sir; I can remember of him speaking in different places. Q. In the district or out ? — A. He spoke once or twice, I think, in the district there ; 1 don't know of but one or two speeches that I heard him make in the district. I suppose he made fifty, but I don't know. I know of a couple of times he spoke close to town ; all I rememljer. Q. What office does Mr. E. B. Drake hold — the old gentleman ? — A. I don't know, sir ; he has something to do with the revenue office, but I don't know what it is. Q. Did you ever see him do anything?— A. Yes, sir; I have seen him going off in the country, at least going off on the railroad. I supposed he wiis a ganger — don't know what he was — or general storekeeper. (^. What are the duties of a general storekeeper? — A. He has to go and gauge the licpiors when a man wants to withdraw them from the wareliouse, and when a distillery is suspended the keys are turned over to the general storekeeper. Q. When a distillery is in operation a storekeeper is assigned to it whose duty it is to carry the keys and attend to it? — A. Yes, sir. (^. When a distillery is susi)ended it is put in charge of a general storekeeper who keeps the keys but don't stay at the distillery ? — A. Yes, sir. (}. And wliere tlu^ owner of the liquor in a bonded warehouse wants to witlxliaw any of it the general storek«'('i»er's duty is to take Urn keys and open the warehouse, regauge and stamp the licpior, and keep the keys? — A. Ves, sir. (}. N'oii do not know how ninch of that duty Mr. Drake has dons'? — A. I d<»n't; thcie is a good deal of it to do. (^. How in;in.\ general slor«'keei»ers were there in Statesville, or near there?— A. I don't know of any oidy iNIr, Drake; don't remember of an.N . Q. Don't yon know .Mr. Henry Mott was one ^ — A. No, sir. I thought Mr. Henry Mott was deputy colh.'ctor. 1 don't know what he is. (^. Did you know that Mr. Camm. I'earsou was a general store- keeper? — A. He might have been in th«^ western i»art of the district,, about I\!or;;anton. THE SIXTH DISTRICT OF NORTH CAROLINA. 47 Q. Yoli don't know liow many there were aronnd there ? — A. No, sir. (^. What other business did Mr. Drake foUow besides that of general storekeeper ? — A. He is a printer, and runs the American office. Q. He is editor and proprietor of tlie American? — A. ZSTo, sir; Mr. Bill Drake is the proprietor of the office. Q. Now ? — A. Yes, sir; has been for a couple of years. Q. Mr. E. B. Drake edits it ?— A. I don't know whether the old gen- tleman has anything to do with it. I saw him uj) there writing some- times. Q. How often did you ever see him go off with a gauging rod ? — A. I don't remember; saw him several times — don't know how many times. Q. You remember when Daniels's distilleries Avere seized ? — A. Yes, sir. Q. When the liquor was lost, found buried, and so on f — A. I remem- ber something about it. Q. It was under suspension then, was it not ? — A. Y'^es, sir. One was just starting up ; just tixiug to start up. Q. It was under suspension when seized ? — A. Y"es, sir. Q. Who was the general storekeeper in charge of that distillery ? — A. I could. not tell; I don't know. Q. Do you know who had the keys ? — A. No, sir. Q. When the liquor was stolen ? — A. I don't know. Q. Were you there ? — A. No, sir. I was on duty at my place every day, and don't know anything about it at all. Q. Where was your place ? — A. Ten miles and a half northwest of town. Q. You did not hear about the row ' — A. Heard it after it was all over. Q. Did you understand whose district it was in — what general store- keeper's ? — A, No, sir. I don't know whose — the general storekeeper of the county ; then laid oft' in counties. Q. Did you receive a letter from Washington some time in January last through the collector's office asking you if the collector owed you anything, and if your salary had been paid, &c.t — A. If the collector owed me anything ? Q. Yes. — A. Not that I remember, sir. Q. Let me read it to you. [Exhibit 1 read. J Did yon receive such a letter as that ? — A. If I did, I don't remember. If I did, you will And the answer for it. I answered all letters written to me — anything writ- ten from Washington. Q. Did you not receive this letter and hand it over to a Mr. Hall, and ask him to answer it for you ? — A. There is no man in the office by that name. Q. You can answer the question? — A. There is no man of that name Q. No man living of that name? — A. No man in the office. There is a Frank Hall Q. Just answer the question. — A. I did not. Q. Did you ask anybody to answer this for you ? — A. I think Mr. Hall Caldwell. I asked Mr. Hall Caldwell to answer it. Q. I will read you something more. (Exhibit 2 read.) A. That is the letter I wrote and gave him to copy. Q. You gave it to Hall Caldwell and asked him to copy it ? — A. Yes, sir. 48 COLLECTION OF INTERXAL REVENUE IN Q. I will ask you if, with tliis letter from the Commissioner sent to you, this form of au answer did not also come to you*?— A. Xq, sir. Q. And on it was written (quoting), "Write something like this"; "Copy this"? — A. Xo, sir; nothing of the kind. Q. From whom did this form come? — A. I wrote that, and asked Mr. Caldwell to copy it for me. Q. Did not a letter like this accompany the Commissioner's letter? — A. No, sir ; it did not. Q. With the instructions on the margin "Write something like this"? — A. ]Sro, sir ; it did not. Q. This was written entirely by you, without any dictation from any one ? — A. It was written by myself and handed to Caldwell to copy. He wrote a good hand. Q. You did not sign it at all ? — A. Of course not. I signed the one I gave him to copj^ Q. He just re-wrote your copy, signed the name and all, and sent it on ? — A. Yes, sir. Q. Did you receive a circular letter from the collector's office at any time asking vou what your politics were ? — A. From the sixth district there ? Q. Yes. — A. Never did. Q. From the collector's office? — A. I have always been a Eepublican. They knew Avhat I was. Never received anything of the kind. Q. Do you know of such a letter having been addressed to the officers of the district? — A. I do not. Q. You never heard of any ? — A. Xo, sir. Q. Do you know of any officers discharged, or who failed to get as- signments, because of their politics ? — A. If there was I never heard it. Q. You never heard Mr. Price say he was discharged ? — A. No, sir. Q. Nor Mr. Fesperman? — A. No, sir. Q. You never heard that INIr. Bailey was ? — A. No, sir. Q. Do you know" the reason why Price was discharged? — A. I don't know. They discharge them every now and then when they do not do their duty right. Cross-examination, by Mr. Pool : Q. How did 5'ou come to get out of the revenue service two months iigo ? — A. I just resigned of my own good will. I had other work to do, and could not well run the revenue and attend to that too. (^. ])id you ever hear that Mr. E. P. Drake neglected his official duties? — A. No, sir. Q. Did you ever hear of any negligence of duty on his part? — A. No, sir. Q. Is ^h\ Drake a man of liigh character and standing in the commu- nity? — A. Yes, sir; considered tliat in Statesville. (,). How old a m;in is he? — A. About sixty to sixty-five years old. (^). J low long lias he been the editor of the Statesville American ? — A. Something over twenty years. I think longer than that — about twenty-Ove oi- thirty y<'ars. Q. 1)1(1 von fonlriWiite wliat you ga\e to campaign funds willingly? — A. Yes, sir. i). Was tliei'e an\' conipnlsion llicn n]>on you? — A. No, sir; none wliatev er. (}. W'iiy (ii solemnly swear that I have faitiifuliy rendered the services as above charged ; that such services were, in my opinion, itrojier and necessary ; that the rate of comjieMsation theiein statcul i.s the .same as agiced u])ou witli the ctdlector, and is jii.st ami reasonable;; that I have not i)aid, depoNited, or assigned, or contracted to pay, deitosit, or assign any ]tart of such coMijteusation to the use of the collector, or any other person, in any way, directly o]' indirectly, or jtaid, or given, or caviueiit, W. H. KESTLER, Z>«'//(/ ro». I, W. H. Kestler, |iinion, proju'r aud iiecessary ; that the rate of compinisation tluM'einstated is the samc^ as agret^l upon with the collector, and is just and rc^ason able; tiiat I liave not ]»ai(l, (lei)()sit(Ml, or assigned, or contracted to pay, de|)osit, or aHsign, any jiart of hucIi eomixMisation to the ns(^ of the eolhu'tor, or any other person, in an\ way, directly or indirectly, or i)aiil, or given, or contracted to i)a,y or give, any r(!\vard <»r foni]>ensat ion foi' niv office lU' emidovnient, or t li(> emoluments tlier(H)f. \V. II. KESTLKR, i)f .(nIv, l'^73. J. A. CLARKE, JJep'ti/ Coll. THE SIXTH DISTRICT OF NORTH CAROLINA. 53 Q. That makes three quarters — uiiio mouths — for which vouchers are filed in your name, that you say you did not render service for '? — A. Yes, sir. Q. Two of tlicm you did not sign ; tlie last one, just read to you, you signed but did not swear to t — A. Yes, sir. Q. Yon may explain now, if you desire, how it was you came to sign it and did not swear to it. — A. Tiiere was a blank sent me, my recol- lection is, by mail, to sign for the services that I had rendered for the month. I signed it and mailed it. It was blank ; and some time after- ward there was anotlier one came — I don't recollect now whether Mr. Clarke had it, or who — saying that it had been misplaced or lost by some one, and I signed another one blaidi, and that was the way of it. Q. How came you to fill it np for $375, or did you do it ? — A. I signed it in blank; there was nothing on it. Q. A^o part of that is in vour handwriting except your name ! — A. That is all. Q. And the other two, although just like that, for other quarters, uone of them are in your handwriting, not even the signatures ? — A. Iso, sir. Q. You know nothing about those? — A. Xot at all. Q. This last one came by mail with the request to sign it, leaving it to be filled up at the office'?— -A. Yes, sir; for the month I was in the service. I signed two blanks. The Chairman. We offer in evidence the abstract of vouchers sworn to and filed by the collector, Dr. Mott (marked Exhibit 10, as follows) : (G3.) Prescribed for use December 15, 1870. (To accompany Form 91, rendered quarterly to the Comraissioner of Interml Revenue.) Abstract of vouchers of expenses attending the administration of the office of the collector of the (ith district of N. C. for the quarter ending JimeSOth, 1873. ti -s Name of deputy, clerk, or other party to whom pay- ments are made. Amounts paid. s a a c« o o O k O 6 3 s o H o o 'a .a o Remarks. 1 450 00 200 00 200 00 300 00 375 00 250 00 250 00 175 00 June 30 " 30 1, 800 00 1, 200 00 1, 800 00 1, 800 00 1, 500 00 1, 500 00 1, 500 00 1, 500 00 1, 800 00 1, 200 00 2 Ma Apr Ma ylst " 20 " 1st " illst" ylst " 20 " Ganger. 3 J. Q. A. Bryan 4 X. W. Lillington Ganger. 5 W. H. Kestler 6 W. M. Walker Gauo-er. 7 P. E. Martin ' 8 0. H. Perry 9 450 00 Apriillst" 200 00 Ma'v 1st" 10 W. W. Mott 11 R. F. Simonton - -- - 60 00 (In lead pencil: ).. . ■ Total r2, 200 00 650 00 60 00 2, 910 00 1, 769 23 . 1, 140 77 2, 200 00 650 00 I 60 00 J. J. MOTT, Collector. 54 COLLECTION OF INTERNAL REVENUE IN I, J. J. Mott, collector of district No. 6, in the State of N. C, do solemnly swear that the foregoing statement is in all respects just aud true according to my best knowledge aud belief; that the several items charged, as set forth in detail therein, are at the reasonable and customary prices at the place where the charges were in- curred; that each and all of them were uecessarj^ for the proper discharge of my offi- cial duties; that I have not received or retained, and am not entitled to receive or retain, for the benefit of myself or other persous, directly or indirectly, any portion of the sums charged or d sbursed; and that the disbursements charged were made in^ good faith. J. J. MOTT, Collector. Sworn and subscribed before nic this the lUth day of Julv, 1873. J. A. CLARKE, DepUy Coll. The Chairman. And in that abstract of vonchers we find the name of W. H. Kestler for $315 paid to liiin as a depnty. And then we offer in evidence an amended abstract of vonchers for the same period, with the same oath or affirmation, bnt with the name of W. H. Kestler left ont entirely. Mr. Pool. Is the amended voncher in the same langnage! The Chairman. The affirmation is in the same langnage. (Marked Exhibit 11 ; is as follows:) (33. Amended. Prescribed for use December 15, 1870. (To .accompany Form 91, rendered quarterly to tbe Commissioner of Internal Revenue.) Abstract of mucliers of expenses attending the administration of the office of the collector of the 6 district of X. C. for the quarter ending June 30, 1873. 1 Xarae of deputy, clerk, or other party to whom payments are made. Amounts paid. a ft 1 5 > o d IZi o ■" o o o a 1 t a 1 $332 97 171 00 171 00 2 J C Mcintosh 3 J A. Bryan 4 jf W Lillin<'ton 5 H y Mott " 332 97 164 83 6 N M. Walker 7 P. R. Martin 8 J. II. Perry 171 00 9 $375 00 112 61 10 W. W. Mott r 1, 343 77 (In lead i.oucil) '^^'^ "^ 1, 343 77 487 61 [ 1,831 38 J. J. MOTT, OoUecior. I, .1. .1. Mott, collector of ilistrict No. G, in the State of N. C, do solemnly swear that tin- foregoing statement is in ail resjjects just and true, according to my best knowl- edge; anil belief; that tlie several itcuiis cliarged, as s^^t forth in detitil therein, are at tlie reasonable and customary pri(;es at tlie i)lace where tlie charges wimc incurred; that r-aeh and all of them were necessary for the pro])er dis(;Iiiirge of my oriicial duties ; that I h;iv(; not receive,!! or retained, and am not eiititleil to I'eceive or retiiin, for the ItentWit of iriyself or otinr jiersoiis, direetly ui- indirectly, any i)ortiou of the sums charged or disbursed ; ;ind th;il llie (liNhinsiinenls charged w(5i'e made in good faith. J. .J. MOT']', Collcclor. .Sworn d hrlul'. 'Jlsl day of Sept., Irt71. ■ W. Y. IJAILEV, Drpt'i/ ColVr. THE SIXTH DISTRICT OF NORTH CAROLINA. 55 Q. I understood you to say at tliu ojxMiiuf;' that you only received $05 for that part of a mouth ? — A. Yes, sir. Q. Did J)r. Mott, 3[r. Chirk, or those iu (^liari^i; of the oflice, know that you had rendered no service during- these tliree inontlis for whicli there is a charj;e made? — A. Tliev ouglit to know it; I can't sav as to that. Q. You were not about the oftice? — A. Ko, sir. Q. You received no orders from them, nor anytliing; of tliat kind? — A. No, sir. Q. You were at home and doing- no service? — A. Tlie way that was, is this: When I was there I had a child taken sick. I went to ]>r. Mott and told him I would like to go home; he told me all right, and I asked him for a little money; he gave me a check for tifteen dollars; I went home. At least he told me to stay there until further orders to assign me, or something of that sort, and I went home and staid the balance of the month out. Sometime afterwards I wanted some money, and I sat down and wrote to him about it. After writing two or three letters he sent me a ])ost-oftice order for fifty dollars. Q. Was that all that ever passed between you after you left ? — A. Xo, sir ; we had several conversations about that afterwards. Q. State any circumstances that indicated he knew you were not doing work. — A. From what he told me I know it. Q. Y"ou never claimed anything more, did you? — A. Xo, sir. Q. Did he ever offer to pay you anything more ? — A. Xo, sir. Q. Did he ever ask you wliy yon never called for more pay ? — A. Xo, sir. He came to see me about it once or twice. Q. It seems that the true voucher for $65 is subsequent to the others. When did he get that voucher from you? — A. Do you mean the first one? Q. Yes, the correct voucher for $05, which seesns of a later date than the other vouchers? — A. Since the other ones? Q. That true voucher is approved iu September, 1874; the others are January, 1873, April, 1873, and July, 1873 ? — A. What is the date of that first voucher — the one I signed? Q. For .$05 ?— A. Yes, sir. Q. That is sworn to the 11th of September, '71. It seems that these others are dated prior to that, and this is dated subse(iueutly ? — A. I don't know how that is. I have got a memorandum of the time I re- ceived the ])Ost-office order. Q. When was that?— A. (Looking). That was October 30, 1872. Q. That closed up your payments '? — A. Yes, sir. Q. And the genuine voucher was really paid you, but was not called for till '74? — A. It was sometime after I got the money. Cross-examination by Mr. Pool: Q. Were you ev^er i^aid anything more than the $05 ? — A. That was all I ever received. Q. You did service for that $05? — A. Xo, sir; I never did any service at all. Q. Xot for the $65 ?— A. Xo, sir. Q. Xot for the three weeks ? — A. Xo, sir. Q. Were you an otficer at the time covered by the $05 ? — A. Yes, sir; Dr. Mott told me to go home, and he would assign me to duty; bat I never got any orders. Q. What was the position you held then? — A. Deputy collector. Q. You reside at Salisbury ? — A. Yes, sir. 56 COLLECTION OF INTERNAL REVENUE IN Q. And remained deputy collector only tliree weeks ? — A. It was a month, I tliouglit. I might have been Diistaken. Q. AVere you an officer at the time of these otlier voucliers spoken of — January, Aiiril, and Julj^, 1873? — A. No, sir; not to iny knowledge. Q. You were not appointed to any position at all at that time ? — A. No, sir. Q. How were the deputies then appointed ? — A. Dr. Mott gave me the appointment. Q. How did you come to be appointed ? — A. Through the solicitation of some of my friends, who asked Dr. Mott to give me an appointment. Q. That was in 1873, was it ? — A. I think it was along thereabouts. Q. About what time in 1873 ? — A. I can't remember — can't recollects Q. Did he give you an appointment? — A. Yes, sir. Q. And told you to go home until he assigned you to duty ? — A. Y'es, sir. Q. How long did you stay in Statesville '? — A. I think, the best of my recollection, I was there about a week or ten days. Q. And then you were sent back to Salisbury! — A. Yes, sir; I was not sent back, I went back. Q. And the voucher was i)nt in then for three weeks ? — A. I signed it in blank; 1 don't know what it was for. Q. Then this other matter occurred in '73, and you signed in July^ '73, a voucher that w^as sent to you by mail ? — A. That is my recollec- tion. Q. Y"ou say you were not an officer at that time ? — A. No, sir. Q. How came you to sign a voucher for pay when not an officer ? — A. Simply because they told me the other voucher had been lost or misplaced. Q. Which other one do you mean ? — A. I had signed another one before that. Q. For the sum of $375 ? — A. No, sir ; I never signed one for $375. Q. You signed it in blank ? — A. Yes, sir ; I signed it in blank. Q. Shortly after you signed one, you signed another to take the place of it ? — A. Yes, sir. Q. How came you to sign either of these, when yon were not an offi- cer! — A. They told me I was i^aid, and for that reason I got the money before I sent anything. The money was i)aid to me, and afterwards I signed these blanks. Q. Do you know whether these vouchers, signed in blank, in that way, were ever allowed to Dr. Mott? — A. I do not. (^. Do you know how these vouchers came to be made out? — A. No, sir. Jiy Senator McDill : Q, Do you know about the time you were in the service, and these vouch(*rs were sent to you, that there had been a change in the revenue law, abolisliing tln> oliic,.' of assessor? — A. xVt the time I had this a[)- jioinl mcnt '. (}. Vcs. — A, Yes, sir; the assessor had been — 1 don't think he had been, bccans*^ tln^ assesscn' was the genlh'man whose intlnencc got me the |)lac(' — I don't think he had been dischaigcil. (}. Shortly alter t liaf t lie law was changed, and so the ollice of assessor was ;dK»lislied ? — A. ^'es, sir; I eould not swear positiNciy whether abolislierl oi' not — don't think it was. (,). N'oii know it was soon after? — A. Yes, sir. <^). And Unit alter the abolition of the office of assessor the dnty of THE SIXTH DISTRICT OF NORTH CAROLINA. 57 collecting the revenue devolved entirely upon the collector iiud his de- puties or employes, did it not? — A. J presume so. It is a matter I know'very little about. That is my information. (}. Did any one tell you tliat these vouchers yon signed were for the jiurpose of making up iui estimate showing what it would cost to run the district, or anything of tiiat kind? — A. No, sir; 1 can exphiin to yon how it \vas told to me by Mr. Clarke, who was in the service, and Dr. Mott also. Q. Mr. Clarke talked with you about the matter? — A. Yes, sir. Q. And that was the way yon were induced to sign one of the larger vouchers ? — A. I never signed them at all. Q. Yoit had no knowledge of their making up any estimate, or any- thing of that kind, as to the expenses? — A. No, sir; none at all. J. A. Hams AY sworn and examined. By the Chairman: Question. Where is your present residence ? — Answer. Salisburj',. North Carolina. Q. Were you at one time in the employ of the sixth collection district of North Carolina ? — A. I was. Q. How long? — A. Nearly two years. Q. From when to when? — A. From about the 1st of March, 1872, to- the IStli of February, 1874. Q. What compensation were yon to receive ? — A. Mr. Henry Cowles came to Salisbury before the 1st of March, purporting to be the repre- sentative of Dr. Mott, and stated that I would receive the salary of $100 per month or $1200 per annum. I made no contract with Dr. Mott at all. There was nothing said about it. That was the way we started it. Q. How long were you running that way ? — A. About two months. Q. Two mouths at a salary of $100 per month? — A. Yes, sir. Q. Then what took place?— A. On or about the 27th of April, 1872^ I don't recollect precisely the date now, I was assigned to a larger ter- ritory, and the salary was increased. Q.' To how much? — A. At the rate of $150 per month. Q. Did you receive it? — A. No, sir. Q. Why did you not? — A. In the settlement they wanted to make, they wanted to put the salary at $100 per month. Q. Is that your haudwriting to that voucher ? ( Voucher shown to wit- ness.) — A. It is, John A. Kamsay. Q. I find three vouchers here; one commencing September 30, for the last quarter of 1872. — A. That is my signature. Q. That voucher is for $150 ?— A. About $300 of it has been received. Q. You received only $300 of it? — A. That is all ; so I claim the ba- lance. The Chairman. AYe offer in evidence these vouchers. They are the originals from the department, which we will have copied by the steno- grapher. The original voucher of J. A. Ramsay for $150 (marked Exhibit 12) ; the amended abstract of vouchers of Dr. Mott, fixing the salary of J. A. Eamsay at $300 (marked Exhibit 13); and the account voucher made out for $150, with the approval of the collector that it is a just and true charge, for the last quarter of 1872 (marked Exhibit 11.) bS COLLECTION OF INTERNAL REVENUE IN Exhibit 12 is as follows: (63^) (Original.) DEPUTY collectors' AND COLLECTOR'S CLERKS' ACCOUNT FOR SEVRICES. J. J. Mott, collector of internal revenue, 6th district of X. C, to J. A. Ramsay, dr. Eor services rendered as dep'ty coll. of the 6tli district of N. C, during the period fominencing Sept. 30, 1872, and ending Dec. 31st; 1872, inclusive : Three months, at the rate of |1,800 per annum S450 days, at tlie rate of $ per day $ Commissions on collections, at per centum $ The services were performed at Salisbury, Rowan Co.; Charlotte, Mecklenburg Co.; Liucolnton, Lincoln Co.; Newton, Columbia Co.; Gaston Co., and Cabarrus Co., and were of the following character: Collecting on list. Received payment. JOHN A. RAMSAY, JJept. Coll. I, J. A. Ramsay, dep'ty coll. for J. J. Mott, collector of the 6 district of N. C, do sol- emnly swear that I have faithfully rendered the services as above charged ; that such services were, in my opinion, proper and necessary ; that the rate of compensation therein stated is the same as agreed upon with the collector, and is just and reason- able ; that I have not paid, deposited, or assigned, or contracted to i^ay, deposit, or assign, any jiart of such compensation to the use of the collector, or any other person, in any way, directly or indirectly, or paid, or given, or contracted to pay or give, anv reward or compensation for my office or employment, or the emoluments thereof. JOHN A. RAMSAY, Dejjt. Coll. Subscribed and sworn before mc this 10th day of Jan'y, 1873. J. A. CLARKE, IJei)'tii Coll. Exhibit 13 is as follows : (63.) — Amended. Abstract of vouchers of expenses attending the administration of the office of the collector of the sixth district of N. C, for the quarter ending Dec. 31, 1872. ^ Amounts paid. s 3 a a p o o JJ"anie of (Icpiity, ckrk, or otliL-r party to whom pa.^ iiieuts are made. 3 3 o H c a "3 o S if i 1 J. A Kamsay W. P. Drake 300 00 300 00 65 00 235 00 '> 3 "W. IT. Kestler 4 W. M. Walker J. A. Clarke 375 00 60 00 fi R. r. Siiiionton 12 00 7 Lee .lain.s Deimiri Moore 3 00 91)0 375 60 12 3 1,350 J. J. MOTT, Collector. THE SIXTH DISTRICT OF NORTH CAROLINA. 59 the sums cliargedor disbursed, and that tlie disburseniLiitscliaiyed were uuuU: in good faith., J. J. MOTT, Colledor. Sworn and subscribed before; nio tins the '^Ist day of Se))t., 1874. W. Y. BAILEY, Dciitij CoU'r. Exiiiiiir 11. Abulract of roitchers of expenses attendinj/ the cuhnuiinlration of the office of the collector of tlte t)itracl of vouchers of expenses attending the administration of the ojfice of the coUrdor of the sixth district of N. C. for the quarter ending March, 187:5. Name of deputy, clerk, or other party to wliom payments are made. Amounts paid. a g 5 U a > o 6 p. . i "3 o H =2 1 3 s 5 S 1 300 00 800 00 300 00 '.. ? W. P. Drake :^ W. M. Walker J. A.Clarke 4 375 00 "" 60 00 f) 9 00 Dennis Moore 1 3 00 Total 1 900 00 375 00 60 00 9 00 3 00 J. J. MOTT, Collector. I, J. .J. Mott, collector of district No. 6, in the State of No. Ca., do solemnly swear that the foregoing statement is in all respects just and true, according to my best knowledge and belief; that the several items charged, as set forth in detail therein, are at the reasonable and cnstomary prices at the place wliere the charges were in- curred ; that each and all of them were necessary for the proper discharge of my ofti- cial duties ; that I have not received or retained, and am not entitled to receive or retain, for the benefit of myself or other persons, directly or indirectly, any portion of the sums charged or disbursed, and that the disbursements charged were made in good faith. J. J. MOTT, Collector. Sworn and subscribed before me this the '21st day of Sept., 1874. W. Y. BAILEY, Ijyty CoIVr. The CiiAiiiMAN. Then we offer in evidence a voucher in the same form for the period commencing- April 1, 1873, and ending June 30, 1873, for $450. This is the second quarter, in tlie usual form verified (marked Exhibit 18) witli the original abstract of vouchers. Dr. Mott swearing to its correctness on the 10th of July, 1873. (See Exhibit 10.) And the amended abstract of vouchers sworn to by Dr. Mott on the 21st of Sep- tember, 1874. (See Exhibit 11.) (Paper shown to witness.) The Witness. For the month of April I do not claim the $50. For May and June I do. That was prior to the agreement between the col- lector and myself. Q. So this voucher for the second quarter of 1873 is too much by $50, for the reason you give ? — A. Yes, sir. 62 COLLECTION OF INTERNAL REVENUE IN Exhibit 18. (g:H.) Original. deupty collectors' axd collector's clerks' account for services. J. J. Molt, collector of internal revenue 6 district of X. C, to J. A. 7?a»i-srti/, Dr. For services rendered as deputy of the G district of N. C, during the period com- menciug April 1st, 1873, and ending June 30, 1873, inclusive. Three months, at the rate of $1,800 per annum $450 00 days, at the rate of $ per day $ Commissions on collections, at per centum $ The services were performed at Statesville, Charlotte, Concord, Salisburj', Lincoln- ton, and Dallas, and were of the following character: Collecting on list, and taking: return of distillers, manufacturers of tobacco & cigars, brewers, &c. Received payment. JOHN A. RAMSAY, Dept. Coll. I, J. A. Ramsay, dep'ty for J. J. Mott, collector of the 6 district of N. C, do sol- emnly swear that I have faithfully rendered the services as above charged ; that such services were, in my opinion, proper and necessary ; that the rate of compensation therein stated is the same as agreed upon with the collector, and is just and reason- able ; that I have not paid, deposited, or assigned, or contracted to pay, deposit, or assign any part of such compensation to the use of the collector, or iniy other person in any way, directly or indirectly, or paid, or given, or contracted to pay or give any reward or compensation for mv office or employment, or the emoluments thereof. JOHN A. RAMSAY, Dept. Coll. Subscribed and sworn before me this 10th day of Julv, 1873. J. A. CLARKE, DepHy Coll. Q. AVill you state whether you were ever asked to sign aiiy other vouchers? — A. Yes, sir. Q. Wheu? — A. Some time iu '74; I dou't recollect. Well, there were several applications. Mr. Clark came down tirst, some time, I think, about the latter part of February, 1874, and asked me to sign different Aouchers. Q. Different from those already signed ? — A. Yes, sir. He said there was something wrong about it. I declined to do it. I told him I had signed one set. Then Dr. Mott himself came down and insisted upon my signing another set. I declined. Then Mr. John M. Horah came down and insisted u[)on me signing another set. 1 declined to sign the icgnlar i)rint<'d form. 1 told him I would sign after consultation with the attorneys, and state what L had received, reserving all rights of action to recover the bahince (1ik\ (). When was tliat? — A. Tliat was doiu' some time in '74. I can't rec- olh'ct the dates i)ositively. ii. There is some testimony here taken out of Keferee Henderson's report; perliii]»s it will refresh your mcMnory as to dates. — A. 1 had the ])apers Ity me when that was given. (^. in this t«'.sfimony wliich you gave before Keferee Henderson, in tlie suit befwe(;n ('olleetoi .Molt and yourself, you say this was in the spring of 1.S7 1. Now, witii that reminch'r, o you know anything about the division of stills into a luimlHjr THE SIXTH DISTRICT OF NORTH CAROLINA. 67 of sinaller ones that is going" on down there ? — A. I^othing only com- mon rnmor. Q. Do you know anything about the way in which storekeepers are appointed — what hand the distillers have in appointing them ? — A. Dur- ing the time I was connected with the service there was but one ap- pointment there could be any reasonable fault with, and Dr. Mott spoke "with me about that ; he remarked he thought there was something ques- tionable about it, but that he was placed in a positicm that he did not know how to get at it. Q. Who was that ? — A. It was a distillery run bj^ Hall & Benbow. I think Benbow was the man's name who ran the distillery first. After- wards it was sold out and Benbow applied for the storekeepership. Q. Hall & Benbow were partners, and they dissolved? — A. Hall was a silent partner. Q. And then it was sold to Hall entirely, and Benbow remained a store-keeper? — A. Yes, sir. He reumrked he did not like the course of affairs, but did not know what course to take. Q. That was while you were in office f — A. Yes, sir. Q. Since that time do you know of any cases existing where store- keepers divide their pay with distillers ? — A. Only common rumor. Q. Can you give the names of parties whom rumor says did these things, so that you may aid the investigation ? — A. I heard one store- keeper saying something about it ; don't recollect precisely what he said. He is now out of the service, and judge that was the cause of it. His name was Bruner. Q. What was the cause of it ? — A. He would not divide with the dis- tiller. Q. Where is he '? — A. Salisbury, X. C. Q. What is his given name ? — A. Thomas K. Bruner. Q. Is he the only one you heard speak on that subject ? — A. Yes, sir. I had nothing to do with the revenue service since, and have not talked with any one about it. He was down at my house one evening, rather out of humor, and just remarked he would do nothing first before he would work and pay somebody else. Q. I will ask you if it is not the common understanding in that coun- try, so far as yon know, that distillers dictate who their storekeepers shall be, and refuse to run if they do not get them ? — A. During my connection with the service I heard but one distiller make any such statement as that, and that was a man by the name of Mull. He stated if he did not get aman to suit he would not run. It was when I went up to take the capacity of his distillery, to which I replied, " I guess you will take whom they send." Said he, " If they don't send a man to suit me I won't run." Q. Did he afterwards run ? — A. He did. Q. The presumption is he got a man that suited him ? — A. Well, he complained of Dr. Mott, I think, shortly after. Said he could not get him to talk with him ; he was very indifferent and would not talk with a common man. He did not get any satisfaction out of the doctor, and that is the reason he approached me, saying he could not do anything through him. I told him he could not do anything more with me thaa with the doctor. He is the only man I heard of — that I know of my own personal knowledge. Q. laskedif it was not the common understanding that distillers coukl dictate who their storekeepers should bef — A. I have heard it said; whether any ground for it I could not say ; heard ir spoken of several times. 68 COLLLCTIOISr OF INTERXAL EEVENUE IN Q. Do you know of auy case wliere one distillery has l>eeii made into two or three by dividing- it f — A. Xo, sir ; I don't. In liowan County there is very little of that sort of work carried on. Q. There is very little distilling- in that county ? — A. And I travel very little through the upper counties where the distilling is carried on. My business since then is in a different line. Cross-examination resumed. By Mr. Pool : Q. You did not hear any complaint of this kind from Mr. Bruner until after he was discharged ? — A. Xo ; I think he had ceased then. From his statement he is not discharged yet; only not assigned. Q. Out of employ ? — A. Out of employ. Q. And you say Mr. Bruner was in ill humor ?— A. He was complain- ing as if he luul not been treated right. Q. Mr. Mull is a distiller ?— A. I think he is. Q. He is not a revenue oflflcer ? — A. I don't know that he is. I have not seen him for seven or eight years. Q. He said he would not run unless he could get a storekeeper to suit him ? — A. Yes, sir. Q. He talked with Dr. Mott about it, and could not get any satisfac- tion out of the doctor ? — A. Yes, sir. Q. He tried to get a little more satisfaction out of you, and you could give him no more ? — A. Xot a bit; he would have to take whoever was assigned to him. Q. He did run the distillery ? — A. He finally got ready to run ; I don't think he ran until after I left the service. I have no recollection about being at his distillery after it was runuing; I think this conver- sation was in the summer or the fall of 1873. Q. You do not pretend to say that he did get a storekeeper to suit Xiiiu ? — A. No, sir ; I don't know whether he got one to suit him or not. Q. You don't know anything except he could not get any satisfaction out of Dr. jNIott nor out of you ? — A. Yes, sir. Q. You were asked if there was not a common rumor down there that there was a division between storekeepers and distillers, and you said you had heard it ; do you mean to say that this rumor was a commou one ? — A. I heard it spoken of by several connected with the service, or who had transactions with it; and of course by those outside of the parties interested in the revenue service. (}. Was it anytliing more than a political rumor? — A. 1 can't say u])on Avhat foundation it was. i^. Did yon heai- it at any other time, except when a political cam- j)aigii was going on '. — A. I can't say as to that; I just heard it float- ing around — spoken of l)y several individuals. I can't pretend to fix the time nor men — the individnals that I heard speaking of it. Q. I noticed tin' (piestion when put to you about a "common under- standing*'; do N on mean to say that a common iiimor was a common nndtrsianding; is there any diflerence in your mind between the two? — A. My idea al)ont a rnmor is whei-e several parties are speaking of it — not con lined to two or tlirec, but where it is a sort of rumor in the air tlmt yon mert every now and tlicn. (^). W'oidfl you say that was an " understaiuling," or Just a susincionof it .' — A. I don't know tliat i would be prepared to deline between those two. It is a matter of Nolition with jtersons as to what theii" under- standing of a tiling is. I would say that an understanding has some- THE SIXTH DISTRICT OF NORTH CAROLINA. 69 tiling rather positive about it; while you could not say it positively, but to the best of your knowIedjLie and belief; while a coiuiiion rumor would be something you would not be entitled to give any more than a jiassing credibility to. Q. And this thing was rumor and not understanding ?— A. Kumor; could not say it was understanding ; 1 may be wrong and may be right. By the Chairman : Q. I understood you to say to Colonel Pool that this rumor was mostly among those who had dealings with the distillers? — A. Y"es, sir. J. A. Clarke recalled and cross-examined. By Mr. Pool : Question. You heard what Mr. Kestler said in regard to the making- out of these vouchers, and your own name was used. I wish that you would give such an explanation of that whole transaction as the circumstances surrounding it require. — Answer. In giving my evi- dence the other day I overlooked the Kestler matter when asked. lu regard to the vouchers, I did it, as said before, as a mere matter of forin. Dr. JMott being away, the quarterly' account had to go on. I made up such vouchers as I had and sent them on. He was off in the district doing campaign work and things of that kind, and I believe I signed one of Mr. Kestler's, not knowing at that time he was not a deputy, but afterwards found out, and made amended vouchers as they were ap- pointed. Dr. Mott had men specially working all through the district, which he paid, and he paid most of them himself. As I said, I made these and put them in. Dr. Mott did not tell me at that time who were the deputies. Mr. Kestler had been there. I did not know whether he was at work or not ; had not known Dr. Mott very long. Q. The sort of service he was on was in the nature of a secret service ? — A. So I suppose — policing in different counties all over the district. Q. He belonged, therefore, to a class of which you would not know when a party was in or when a party was out ? — A. Xo, sir. Q. And in Dr. 3Iott's absence you made these out without his knowl- edge? — A. Yes, sir. Q. Did you neglect to make Dr. Mott an explanation of it when he came home ? — A. Yes, sir ; it went on until some outside parties spoke of it ; then it was explained by amended accounts. Q. In which you left Mr. Kestler out ? — A. Yes, sir. Q. AVas any of these vouchers ever paid by the department ? — A. No. sir. So much was allowed to run the district. Dr. Mott changed the appointment of men. Q. Nothing was ever allowed Kestler ? — A. Only the $05. Q. So that really no money was ever drawn from the department on account of these vouchers? — A. No, sir; just Avhat was allowed by the auditor's report. Q. Was Dr. Mott engaged in a political campaign at that time ? — A. I think so; Dr. Mott was everywhere going about. Q. Was it in the campaign of 1872 ? — A. Yes, sir; I think it must be. It has been a long time ago, and don't remember about these things. Q. Do you lecollect it was a very exciting campaign ? — A. Yes, sir. Q. Everybody was engaged in it who was in politics at all exten- sively? — A. Yes, sir. Q. This was shortly after Dr. Mott's appointment? — A. Yes, sir; the same year. 70 COLLECTION OF INTERNAL REVENUE IN Q. The summer follo\vin<>- his appointment in the .spring? — A. lie did not get the olHce until the loth of March. Q. This was the summer foHoAving ? — A. Yes, sir. (,). Did you then go with Dr. Mott ? You had been employed in the reveuue service f — A. Yes, sir. Q. Where at'?— A. The fourth district— lialeigh, Q. The Metropolitau district ? — A. Yes, sir. Q. How came you to go up to Dr. Mott's district ? — A. For the pur- pose of starting the office, with the understanding I would stay about thirty days. Henry Cowles was going to be clerk, I think. Q. There was a supervisor of internal revenue at that time? — A. Yes, sir; Mr. Perry. Q. Mr. Perry recommended you to be sent up there ? — A. Yes, sir; Tery highly. Q. For the purpose of having an experienced hand with the collector to start things ? — A. Yes, sir. Q. He went oft' through the summer when you made this mistake ? — A. I did not so consider it — hardly in that way. A great many collectors are paid by commission, and still put these things in. They were allowed to hire their deputies and pay commission on what they collected. Q. And you generally made up all the papers in the office to be sent to the department ? — A. Yes, sir. •Q. You did not submit them to Dr. Mott ; you usually signed them without explanation to him ? — A. Y'es, sir ; he hardlj' ever looked at the face of the papers. Q. He signed them relying upon your experience ? — A. Sometimes had not seen them at all ; sometimes signed them in blank. Q. On the faith of your experience as being sent there by the super- visor ? — A. Y^es, sir. Q. It appears from the testimony of Mr. Kestler himself that he had not seen some of these papers where his name appears ? — A. I stated I signed one of them myself. I wanted to make the papers up. Q. All these deputies gave you authority to sign their names, when they were absent, to formal jDapers ? — A. Generally so. I am not certain. Q. These papers were made up quarterly? — A. Yes, sir; every three months. Q. The department knew the number of deputies down there ? — A. Yes, sir ; they were allowed so many, at such prices. Q. And if a depnty's name went in that was not among the number the department Avould know — although you certified to it — it was a mis- take? — A. Y'es, sir. (^. So there was no danger of anybody being deceived up here? — A. Ko. No money here would tlu'u be allowed. Q. In ])oint of fact nothing was allowed? — A. They only paid what they thought was right; they might liavebeen sent up for 810,()()(), but would not get it. <^. Th(;re was no i)Ossibility of drawing any money on such things ? — A. Xo, sir. Q. Did yon feel i'niQ to make up these accounts of these deputies if finy of them liajipened to be absent, and to put their names to them? — A. I thonglit it no iiarm. I did nothing I thought Avas wrong in the mattei'. Q. ^'ou icgai'dcd it all as a niattci' of Ibrm; the department knew all about it here ! — Ves, sii'. (i. So your mistake could not ]ia\e any eCleel upliereat all? — A. No 4it1ect, as the department did not allow anything of that kind. THE .SIXTH DISTRICT OF NORTH CAROLIXA. 71 By the Chairman : Q. Yoii said just now that Dr. Mott did not know of these things that were done ? — A. Did not know which ? Q. Did not know these acconnts were made out improperly? — A. At that time he did not. No, sir. Q. You swore the other day, wlien you were examined in chief, that lie did know of it, and that it was doue for a certain purpose ? — A. Tliat was in the statement I made at the time that the office of assessor was abolished — not about the Kestler matter. Q. (Quoting)— Q. You made these accounts up for those gaugers? — A. Yes, sir; made up their vouclicrs. Q. In the case of the depitty collectors, you say that was done for the purpose of increasing the estimate, as you have explained? — A. Yes, sir. Q. That was known to Dr. Mott ? — A. Yes, sir ; known to everybody almost ; we made no secret of it at all, and I think Mr. Wheeler rather advised to make as big a sliowing as we could, knowing we had a large district to look after. The approval of these vouchers was signed and sworn to by Dr. Mott, as set forth in his affidavit, and you can't say that he did not know what he swore to ? — A. We never swore each other. Q. This certificate that it was sworn to, then, is false ? — A. He did not swear to it. Q. Although the certificate says he did swear to it; then that is a forgery ? Did Mr. Kestler at any time authorize you to make out these vouchers for him 1 — A. I am not certain ; a great many of the deputies did. Q. Don't you know who did ? — A. Don't know who did. Q. You thought it no harm to make these out and sign his name ? — A. I sent it on to get my accounts in. Q. And the oath attached to these papers was not really taken ? — A. Not taken. Q. It was all done by you, and you thought it no harm ? — A. Yes, sir. Q. Were you not indicted about this ? — A. No, sir. Q. What- were you indicted for "? — A. About the gaugers of the dis- trict. Q. You had done the gaugers accounts in the same way ? — A. No, sir. I only made up their accounts from their vouchers. They indicted me to keep me from being a witness. Q. What was the offense charged against you?— A. For aiding the gaugers of the district to perpetrate fraud. Q. What became of that indictment? — A. Xoll 2)rossed. Q. You were let off, in other words ; they did not push it against you 1 — A. I tried to get it pushed at any cost. Q. You were sworn before Mr. Henderson, referee in this suit between Mott and Eamsay ? — A. Yes, sir. Q. Is this a correct copy of your testimony ? — A. I don't know, sir. Q. Let me read it to you to see if it is correct (quoting): J. A. Clarke, being duly sworn, deposeth and saith : I now reside in Atlanta, Ga., and have been since March 15, 1879. I was chief clerk for Dr. Mott from March, 187'2, to May 24, 1874. It was customary for the deputy col- lectors to sign their vouchers in blank. Captain Ramsay signed his that way.^ We filled up the vouchers for larger amounts than was actually paid for the purpose, if possible, of getting a large allowance and increase of pay. We wished to get as much for the deputies and employes as the government would allow. Captain Ram- say's vouchers were tilled up for $150 per month, as a general thing. The same plan was applied to others. I myself received .$1,500 a year, but my vouchers were for 72 COLLECTION OF ITTERNAL REVENUE IN $1,800. Captain Eauisay was paid the amounts allowed by government, as stated in the transcript of letters on tile. Captain Ramsay never told me he was to receive, by special contract, $150 per mouth. The goveruuieut objected to the tiling of vouchers for a larger amount than was actually paid the employes. A fuss was made about it, and Dr. Mott was required to get vouchers for the true amounts, which was done, and all the eniploy6s signed except Captain Ramsay. He never told me what he was paying any of the deputies. I kept the records and knew what he was paying. A. That was after the office g'ot started. Now Kamsay, he was a col- lector on the list and had to sell stamps and collect special taxes, and of course I had to keep a strict account with him ; the other men were policing", &c. Q. What time were you discharged ? — A. Discharged the 15th. of May, 1874 Mr. Pool. I do not understand the explanation the witness made to you of the testimony that he gave when he was on the stand before in reference to Mr. Kestler. The CHAIR3IAN. In the examination-in-chief I do not think the Kest- ler case was mentioned. 31r. Pool. When the examination-in-chief was read to him ; what lie testified to there occurred after. The AViTNESS. I explained that the other day. It was the time when the assessors' offices were abolished in the United States. I had refer- ence then to Ur. Mott knowing the accounts. Q. You say that Br. Mott did not know about making up these Kestler accounts ? — A. Xo, sir. Q. In your direct examination you said he did know what was spoken of then. That was after ? — A. That happened in 1873; a different mat- ter. I did not speak of the Kestler matter at all in the examination the other day. By the Chairman : Q. You spoke generally of the deputies' accounts, and he was a dep- uty ? — A. I had forgotten it; about another deputy; had not thought about it for ten years, and said I would have to make an explanation to the committee. By Mr. Pool : Q. In regard to Mr. Kestler? — A. Yes, sir. Q. Which is the explanation you make here now! — A. Yes, sir. By the Chairman : (). Then you wish your explanation to stand that Dr. Mott knew ol all the rest of the accounts made out except Kestler's? — A. He knew all of 1873, when we took the vouchers ibr so nmny. lie knew of them, but the other matter (^ Which "other matter"?— A. The Kestler matter. (^ The Kestler matter was in 1872 or 1873. — A. It was in 1872 or early ])art of 1873. The assessor's office was abolished about the 10th of ]\lay, 1873. J think he was in then. AcijoiiiiH'd till "Wednesday. June 21, at 10a. m. THE SIXTH DISTRICT OF NORTH CAROLINA. 73 Washington, Wednesday, June 21, 1882. The committee met at 10 a. m. W. H. Kestler recalled aud examined. By the Chairman : Question. Wlien you were examined about tliese vouchers the other day, two of which you had signed in blank, and the others that 3'ou said were forgeries ? — Answer. Yes, sir. Q. There were two or three questions that I neglected to ask you. Did you authorize Mr. Clarke to sign your name to any vouchers ? — A. I did not, sir. Q. How long after the date of the vouchers was it before you knew they had been put in ? — A. It was, I think, some two or three years. Q. How did you then find it out! — A. I found it out through Captain Eamsay. Q. Explain it. — A. He had been to Washington to look through some of his own papers, and when he came back he asked me how much money I had ever received while I was in the service. I told him $G5; He said there are vouchers in there of mine for some $1,200. I told him that I did not remember of signing but two, and if more than two in there, they were forgeries, I thought. I never knew anything about it until he told me. I then sent on and got a certified copy of the vouchers. Q. Have you that certified copy "? — A. I have not, sir. Q. Can you remember whether that certified copy included both the original and amended vouchers filed here"? — A. It did not include any amended ; only for the amount that was in on my pay account. Q. Bid you ever have any talk with Dr. Mott about that ? — A. I did not, sir. Mr. Pool. About what ? The Chairman. About these vouchers that were put in. State what he did say to you if you can remember. — A. Dr. Mott came to see me once or twice, twice I think, sir, and in the conversation he said that Clarke had done this, his clerk, thinking I was in the service, and so on. Q. Did he say whether he got any money on these vouchers ? — A. He did get the money. Q. On the vouchees ? — A. Yes, sir ; I asked him then, who got the money ; that he might as well have paid it to me as anybody else — a one-armed man. I remember one name very distinctly, he told me, who got some of the money, a man by the name of Milieu Walker. Q. Do you know whether he said who got the balance of it ? — A. I don't remember whether he did or did not, now. I remember that very distinctly. He went on to say that it was frequently the case to draw money over one man's account and to pay it to another. It was a mat- ter I know nothing about; I knew nothing about the service. By Senator McDill : Q. I understood you to say, in your examination the other day, that you signed Exhibit 9 ? — A. Yes, sir ; in blank. Q. It was in blank when you signed that ?-:-A. Yes, sir. Q. What was it you said they told you at the time you signed that? — A. The voucher ? Q. Yes. — A. They told me the one I had signed had been lost, mis- 74 C0LLECTI(3X OF INTERNAL REVENUE IN laid, or something of that kind. My recollection is, there was oue came by mail, and that I signed it and mailed it. Q. You think that is this oue ? — A. 1 could not say, because they were blanks. Q. Did you ever sign more than two blanks ? — A. i^ever that I rec- ollect. Q. The other oue that you say you signed was for the $0."), as you have sworn here ? — A. You will see, if you will allow me to explain, that for these vouchers I got the money long before ever signing them. The mouey was paid to me, aud afterwards these vouchers were sent to me to sigu. I supposed I was signing them for the pay I got. They were in blank. Q. Did you ever sigu more than two yourself in blank ? — A. I don't think that I did, sir. Q. Did you send them both by mail ? — A. Xo, sir. Q. Which one did you send by mail! — A. I cannot tell. Q. But you signed two. To whom did you give the one you did not send by mail ? — A. I think Captain Eamsay brought me one. Q. That is the gentleman — the witness here the other day ? — A. Yes, sir. Q. The other came by mail ? — A. I think it did, to the best of my recollection now. Q. Did they tell you with reference to both of them that it was sim- ply for 3'our pay ? — A. Yes, sir. Q. Mr. Eamsay told you that "? — A. I think so, sir. Q. And did Mr. Eamsay tell you about the one you sent by mail, that it was for your pay ? — A. That it was mislaid ? Q. Xo, for your pay f — A. ISTo, sir ; the one I gave was lost, or was misplaced, and wanted me to send another. Q. Who told you that ? — A. I think Captain Eamsay told me, and Mr. Clarke told me. I know Clarke came to see me once or twice about it, and we had a conversation. (}. So one else told you ? — A. Xo one that I remember. (^. Dr. Mott did not tell you ! — A. ISot that I remember. Q. One of them was sent to you by mail? — A. 1 think so, to the best of my recollection. Q. Did Mr. Eamsay write a letter in sending it ? — A. From States- ville ? Q. Yes. — A. I don't remember now; could not swear positively. Q. Mr. Eamsay or Mr. Clarke sent it to you ? — A. That sent from Statesville '! Q. Yes. — A. I don't remember now who it was. Q. ira\'(' you got tlui letter that inclosed it ? — A. 'So, sir, I have not. Q. You did not preserve it, and don't remember the contents of it ? — A. .Just " Inclosed you will find blank," or something of that kind, "for \our ])ay. Please sign and return same." Sonu^thing to that effect. (}. Vou don't think thei'e was any statement in the letter that it was to take the jilace of the one that was lost? — \. No, sir. (^. These statemiMits came to you throngh ])ersonal conversation with the two gentlemen, Mr. Eamsay and Mi. Clarke? — A. Yes, sir; who were at tlu' time in tlie service. (^. And with no one else ? — A. I think not, as I remember now. (Jross-exainination by ^Ir. Pool: (}. Did .\(tii luiDW tiial Dr. Mot t was allowed but three de])iities ? — >\. I (lid not. THE SIXTH DISTRICT OF NORTH CAROLINA. 75 Q,. Yon (loiTt 1:ti()w Iio\\- iiuiiiy lie was allowed? — A, Ko, sir. Q. You liave had it exidaiiied to you by Mr. Clarke that he thought you were theu oue of tlie deputies ? — A. Mr. Clarke never said that to me. Dr. Mott said that Clarke thougiit I was in the service when he made out these pay-rolls. Q. And that it was a mistake of Clarke's ? — A. I don't know that there was anything said about a mistake. I know of asking- him about the money ; who got the money, or something of that kind. Q. Do you pretend to say that there was any money drawn on any of these vouchers except the $G5 ? — A. I onlj- know what Mott told me. I asked him who got this money. He said Walker got it. Q. Was he not one of the deputies ? — A. He was a deputy at that time, or had been. Q. Did not Dr. Mott tell you on that occasion this : that I was al- lowed for three deputies and got the money for three, and that you were not one of them, and I paid it to those who were deputies "? — A. No, sir. Q. And you understood him to say that he got tlie money on these vouchers of yours? — A. I asked him the question, who got this money? His reply to me was, Milieu Walker got some of it. Q. Which money '? — A. This money drawn over the vouchers in my name at the department. Q. Suppose it appear in the departmeuts that your vouchers were disallowed, and uo money drawn on them except the $6o'l — A, I don't know about that. I can answer the money was drawn, only from what Mott told me. Q. Is it not possible you misunderstood Dr. Mott ? — A. No, sir. Q. He said he drew the money on your vouchers? — A. Y^es, sir. I know he reiterated it; I remember distinctly, that Walker got the money. Q. Which money? — A. This money drawn on my vouchers, because in the conversation we got talking about it, and my impression was that I was in the service a month, and it was my understanding that I was to have $80 for it. When I went to Statesville I admit that I was very poor, and needed everything I could get. I had no money; had been unfortunate and lost all I had, and did not know where to go to board; and my recollection is. Dr. Mott told me to go down and stop with a man named Price, who kept the hotel. I staid there about a week or ten days; my board bill was some tifteen or twenty dollars. I was called home ou account of the death of a cliild. I went to Dr. Mott and asked him for some money; I told him I had uoi.e. and he gave me a check ou the bank there for fifteen dollars. I drew the money and went home, and when I only received the ^HiJ, I took it for granted that he had paid my hotel bill, and that accounted for the bal- ance, and I knew no better for some time, until Price came down and presented me that board bill. I told him I was under the impression that Dr. Mott had settled it, as I did not get as much pay as I thought I ought to have. He saw Dr. Mott, and he told me afterwards that Dr. Mott said he had nothing to do with my board bill, and afterwards I paid it myself. That was brought up, I recollect. Dr. Mott said he was only allowed for two-thirds of a month. Q. Y^ou were only allowed by the department here for two-thirds of a month? — A. He did not say about the department that I recollect. Q. What was the reason of Dr. Mott going to see you about this thing? — A. I don't know. He came to see me as much as twice. One time he had a pax)er and wanted me to sign it, exonerating him from 76 COLLECTION OF INTERNAL REVENUE IN this matter. I told Liiii I could not do it, for I bad nothing to do with it. Q. That was in '72 or '73? — A. Ye.s, sir. It was a business to me that I knew nothing" about. Q. Did he explain to you the mistake made by his clerk? — A. He told me that Clarke had done it, thinking I was in the service. Q. And that he made a mistake ? — A. I don't recollect about a mis- take. Q. You knew it was a mistake because you were not in the service ? — A. Yes, sir. Q. Did you claim any of this money that was paid ? — A. I did not. Q. You had done no service ? — A. Xoue at all. Q. You were in the service at the time you received the $65, how- ever?— A. Yes, sir; 850 by post-offlce order, and $15 when I went to leave there. Q. Are you well acquainted with the district? — A. No, sir; I can't say I am. Q. Within the last two or three years, has there been a very great improvement in the mode of collecting internal revenue in that dis- trict; is there a better state ot feeling among the people in regard to it ? — A. I don't think I am expert enough to answer that. Q. Was there not a great deal of "blockading," and illicit distilling some three or four years ago ? — A. I don't know, sir ; I have been in the whiskey business all my life. If there has been, I didn't know it. Q. l^ou don't know anything of that sort three or four years ago ? — A. Yes, I can say I have heard of such things; don't know them of my own knowledge. Q. Was it generally talked that there was a great deal of it ? — A. Four or live years ago ? Q. Three or four years ago. — A. Yes, sir. Q. Is there less of it now ? — A. I think there is. Q. Then there has been an improvement ; is that improvement very decided and very marked ? — A. I could not say as to that. The county I live in, llowan, there is not more than one distillery in the county, and the most of these distilleries are in the mountain counties, a consider- able distance from where I live. Q. Do you know of United States marshals, and proceedings in United States courts, and commissioners, and the people saying four or hve years ago, or three or four years ago, that they were greatly op- pressed, and talking of the outrages committed by oflicers — allegations of that sort ? — \. I have heard instances of that kind. Q. Did you hear it generally talked of in that way, and a good deal of rumor and stir about it? — A. I did not, in my own town. Q. Or anywhere within the range of your acciuaintance in that locality ? — A. I could not say that it was generally talked, not in my town. I have heard it. (}. Has there been less of it in the last two or three years ? — A.I think there has. (^. Very deciroveinent ? — A. I will tell you what I tiiink',and give you my idea al>ont it. I notice a great many Dcniociiiis appointed in th;it distiiet, I noticed a good many squibs THE SIXTH DISTEICT OF NORTH CAROLINA. 77 ill the pai)ers i)itehiiig" into the collector of the district, and noticed some appointineuts made afterwards, and it all stopped. Q. Some api)ointments of Democrats? — A. Yes, sir. Q. That o-eiierally stopped it? — A. I noticed the Charlotte 01)server never came ont that it did not have something to say about that collec- tion district; and I know a paper in my town, after some appointments, stopped the same thing. Q. Appointments of Democrats? By the CnAiRMAN : Q. Yon mean newspaper squibs and complaints were stopped after the Democrats were appointed? — A. Y"es, sir. By Mr. Pool : Q. Do yon think the improvement resulted from the appointment of Democrats to the minor oilices? — A. I think so 5 it had a good deal to do with it. Q. There became less "blockade" running? — A. I didn't know about blockading, I have not been engaged in it. Q. Do you know of any oflicial impropriety, of any character what- ever, on the part of Dr. Mott ? — A. None in the world ; none of my own knowledge. Q. Can you name any one man in that district that ever brought a charge of official impropriety against him of his own knowledge? — A. I can't, sir. Q. Then there is nothing of that sort against him of your own knowl- edge, nor can you recollect any individual that you have ever heard bring such a charge against him, of his own knowledge; is that your answer? — A. Allow me to refresh my memory. I can't remember now. I have heard something said about him, but who Q. You heard some rnmors floating around 1 — A. Y'es, sir. Q. These rumors were a little more rife in election times?— A. Ko, sir ; I don't know that they were. Q. These rumors became very much less when he appointed Demo- crats to office ? — A. I think they did. By the Chairman : Q. When you say that you know of no official impropriety on the l)art of Dr. ]Mott, and never heard of any, do you consider the way in which these vouchers were put in, and the money drawn on them, a proper act ? — A. I do not. Q. Did you ever hear of his levying political assessments on his offi- cers? — A. I have, sir. Q. Do you know that is forbidden by law? — A. I have heard so, sir. One man told me he took a month of his pay for political assessments. An officer told me that out of his own mouth. Q. Who was that? — A. Allen Eamsay, a storekeeper, a cousin of John A.'s, I think. Q. Y^ou say that the complaints and tlie charges about the revenue department became less about the time that the collector made a num- ber of Democratic appointments? — A. Yes, sir; one, two, or three that I know of. Q. Have you also heard that under the new system of the dividing of stills, making three or four out of one, putting a storekeeper to each one, and the storekeeper dividing his pay with the distiller, that it may be better for them to run according to law than to blockade? — A. Yes, sir. 78 COLLECTION OF INTERNAL REVENUE IN Q. You heard tliat rumored as one reason the complaints ceased ? — A. Yes, sir. Q. You have been in the liqnor business ? — A. Yes, sir. Q. What has been the price of new whiskey from the stills down there ? — A. Two years ago I left Salisbury, and have been gone about two years. I paid for the whiskej" I wanted, tax paid and stamped, from $1.25 to 81.30 a gallon, and as low down as $1.20. Q. If you know anything of the cost of distilling, there is not much money in that ? — A. They say not ; all I know. Q. So, if the storekeeper divides with his distiller, it was cheaper to run that way than to blockade ? — A. I suppose so. Q. Is not that about the common impression or rumor in the commu- nity ? — A. I know nothing of my own knowledge at all; I have heard these things discussed. <}. Colonel Pool asked you if you did not know that the department disallowed your account, and that Dr. Mott was only allowed three dei)uties. Do you know anything about that ? — A. I don't. Q. Do you know the fact that there was a certain allowance made for the purpose of paying the expenses of running the district, and that that allowance the collector could distribute to whom he pleased ; did you know that ? — A. I could not answer that. By Mr. Pool : Q. Do you know any storekeeper who divided with a distiller ? — A. I do not. Q. Did you ever hear a storekeeper say he had divided with a dis- tiller ? — A. I never heard a storekeeper say so. (}. Did you ever hear a distiller say that he had a storekeeper to divide with him "?— A. Xo, sir. Q. AYhat do you know about the storekeepers dividing with the dis- tillers? — A. Only from what I have heard there — outside rumors. Q. Which rumors became less often, since they appointed Democrats to office? — A. Yes, sir. J. A. Ramsay recalled and examined. By the Chairman : Question. I recall you for the purpose of asking you if at any time you applied for a copy of these vouchers which we have on exhibit now, to be used in your suit against Dr. Mott? — Answer. Y^es, sir; I did at one time make application for them. Q. To whom ? — A. My recollection is that the application was sent to a clerk of the department in Washington, whom I was acquainted with^ to be laid before the proper officer. 1 sent it to Mr. Kaeder. Q. Did you get those copies ? — A. Yes, sir. i). Wlicre an? they ? — A. They were filed in the case. (}. Do you know where they are now ? — A. There, on this transcript of the I'ccord (iii(li(;ating referee's re^iort), the clerk states they were taken out by Dr. Mott. (}, Wlum"?— A. On the 10th of June. (}. So that th«!y were not in your ]>ossession, and not in the possession of th«', court, aclf>ycd in nirintli of Si-pt., 1880. M litis tiiivelliitl (mti: note C l»i'li)W) .(lulls. I'tS.*. A iiiiMiiit iixpi'iidcd (!ach ;), .siM-cial I). C. I'or ,). .). M..tt, collector of the (llli district of Ji. {'., do solemnly swear t hat I liii ve (ait li fully rendered tlu^ .services as above charged ; that Hucli Hcrvicc'i were, in my ()|)inioii, pioper and nece.ssat'y ; that the rate of com- pcTisal ion I lieicin slated is (he sairic jis agiced upon with tln^ collector, and is just and nruRonable ; t lia( 1 li;i vc nol pjiid, deposited, oi- assigned, or conl iiicted lo l)ay, (hiposit, «or assign, any pari of such coinjieii-iat ion to tlie use of the coUectur or any other THE SIXTH DISTRICT OF NOETH CAROLINA. 83 person, in any way, directly or indirectly, or paid or given, or contracted to pay or give, any reward or coni])ensation for my office or employment, or the emolumentt thereof; and that the above statement of days employed, miles travelled, and amouus expended each day, is in all respects true and in exact accordance with the facts. (On the margin :) Revised Statutes, ^ 2693. I further swear that during the above period neither I nor any member of my fam- ily has received, either personally or by the intervention of another party, any money or compensation of any description whatever, nor anj' promises for the same, either directly or indirectly, for services rendered, or to be rendered, or acts performed, or to be performed, in connection with the internal revenue ; nor purchased for like services or acts from any manufacturer, consignee, agent, or custom-house broker, or other person whatsoever, any goods, wares, or merchandise at less than regular retail mar- ket price therefor : So hel}) me God. JAMES H. HARRIS, S. D. C. Subscribed and sworn before me this 1st day of Oct., 1880. P. S. ROSE, Dep. Collr. (On the margin:) Revised Statutes, ^ 1790. (fl.) State whether deputy collector or collector's clerK. {h.) State the particular locality or localities at which the services were performed. (c. ) Miles travelled, or expenses incurred, in making surveys of distilleries or in at- tendance upon court, for which the deputy or clerk has been specially reimbursed, should not be included in the "miles travelled "or "amount expended" reported on this blank. Payments on account of expenses should not be in excess of the pro rata or of the amount actually expended for the period commencing with the fiscal year. INTERROGATORIES. The collector must neither pay the deputy collector or clerk, nor ai)prove his bill on this form, until after the deputy or clerk has written under each question asked below his answer thereto, and has also sworn to the same : 1. What is your post-office address, town and county ? Statesville, N. C, Iredell Co. 2. Are you engaged in other business ; if so, in what business and how much of your time is thus employed ? In no other. 3. Are you in any way interested in the manufacture or sale of distilled sjiirits, fer- mented liquors, or tobacco ? In no way. 4. Is your alphabetical list of special tax-payers written up to the close of the month for which this bill is rendered ? I make no lists. 5. Have you accounted to the collector of your district for your entire collections iu the month for which this bill is rendered ? I render no collections. 6. Have you rendered to the collector all the reports required by law or regula- tions? I have rendered all reports required of ine. 7. Do your reports to the collector (on Form 102) of stamps sold each mouth also show the exact balance by denominations on hand at close of each mouth ? I make no. 102's. 8. Do you make a careful examination of the books of brewers and rectifiers when you receive their returns ? None. 9. Have you (as required by regulations) visited each brewery, distillery, tobacco or cigar manufactory in your district within the present month to ascertain whether the law and regulations are, in each case, strictly complied with in all respects, in- cluding the mode of keeping the books? If not all, state how many, and the reason the others were omitted. I have no division. 10. Do you verify by actual inspection the stock on hand, reported on Form 18, and the claims for loss or wastage made on said form ? 11. How many distilleries iu your division ? 12. How many breweries in your division ? 13. How many tobacco or cigar manufactories in your division ? 14. Do you know of any internal-revenue taxes liable to assessment in your divis- ion which have not been assessed ? 15. If so, why have they not been reported for assessment ? 84 COLLECTION OF INTEENAL REVENUE IN I, James H. Harris," S. dep. coUr. in tlieflth district of N. C, liereby solemnly swear tiiat the statement of worlv on the following pajje, and the answers made by me to the above interrogatories, are in all respects correct and true. JAMES H. HARRIS, S. I). C. Subscribed and sworn before me this 1st day of Oct., 1880. P. L. ROSE, Dep. Col. I have personally read each of the above answers, and believe tliem to Ije in all re- spects correct and true. The collections in this division during the month for which tins bill is rendered amounted to $ . J. J. MOTT, Collector. Itemized statement of duty performed, miles travelled, and expenses incurred. [This page should be a diary of the official trausactions of the deputy or clerk for each woikiug day iu the luoiilh. There should be an entry for each day of a brief and concise statement of the duties performed, and the manner in which the time was employed during that day, showing the places vis- ited, miles tiavelled, and specific expenses incurred, in the proper columns. When travelling, the place from which he started and the places visited should be stated by the deputy, and he should, in such cases, keep a pocket-diary in which to enter daily the details required in this monthly report.) Date. 1880. Sept. 1 3 4 G 7 8 9 10 11 13 14 15 16 17 18 20 21 24 25 27 28 29 30 Duties performed and places visited. At Salisbui'v ] " ■' 'Policing I I Went to Gold Ilill and remained there. . Remained at Gold Hill From Gold Hill to Oakland '.'.'!"!..'.... Keniained at " From Oakland to Concord Remained at " From Concord to Olin, N. C " Olin to Bethany •' Bethany to Troutman's " Troutnian'a to Amity Hill " Amity Hill to Hart's Cliiirch . " Hart's Church to Walhu-e's Store '■ Wallace's Store to .Ino. Mayhew's " Mayhew's to Matins' (irove " Mathis' Grove fo Denver " Denver to Lewisville To I.incolnlon From Lincolnton to Newton " Newton to Hickory Expenses. Total. Dulls. ct8. No mileage nor expenses allowed. Service ]>erformcd as Mpe<-ial deputy collectoi' in the disehar; teuting frauds on int. rev. laws V. S. >f official duti(>8 in exposing and de- A similar voucher to fornior, with ibllowing variations: "Deputy col- lector or (le])uty colle(;tors' (jlerlcs" inontlily account for services" i'or "th& 1» 'liod coiMiiieiicing Nov. lath, ISSO, iiiid ending;' Nov. 3()th, 1880, inclu- Mivc," '4 month," ".fO^.HO," v.ith receipt ami allidavit signed ".I. H. Harris"; answers to "interrogatories" similar, with the following excep- tions : 2. " In no way." 3. "I make none." D<^puty colhictor or chirk, as the case may bo. Tim SIXTH DISTRICT OF NORTH CAROLINA, 85 4. " I render none." 5. Blank. e. " 7. "I luive no distriet." S. "1 make no inspections." J). Blank. 11. "I have no division." Affidavit to above signed "J. H. Harris." liemized stafeineiit of diiti/ perform cd, milcfi trardled, (Did expenses incurred. Duties ]K-it'oiiiied and idacfs visited. 1 Expenses. Total. Dale. 1 "5 > 3 Meals and lodging. Dolls. Cts. 18SI). At Charlotte-. 1 1 1 12 4 00 IG 17 18 li a 19 22 1 00 15 5 00 '20 21 11 I. 11 11 23 11 11 1 24 22 1 00 15 5 00 2.5 26 11 11 27 11 11 1 28 11 11 29 .3U ' ' Monroe 89 92 3 56 6 2 00 225 48 16 00 A similar vouclier to last. Dei)nty collector's or collectors' clerks' montlily account " for services" witli following variations for tlie period commencing December 1st, 1880, and ending 31st, 1880, inclusive," "1 month," $125.00. In table " no mileage allowed." " No expenses allowed." Answers to "interrogatories," &c., similar, except from "2" to "15," inclusive, written across, as follows: "I am a special deputy collector, sixth district of JST. C." Itemized statement of duty performed, miles travelled, and expenses incurred. Duties performed and i^laces visited. 1 1 Expenses. Total. Date. 1880. 1 S > 3 c o P 5 Dec. 1 2 Policing from Statesville to Charlotte, N. C Eemained in Charlotte in discharge of oiticial duties .. 47 2 00 1 00 1. 00 3 1.00 1.00 1.00 1.00 4 11 11 5 11 11 i 6 : 7 " " 1 1. 00 1 9 00 86 COLLECTION OF INTERNAL REVENUE IN Itemized siaiement of duty perfot-med, miles travelled, and expenses incurnd — Continued. Duties performed and places visited. 1 1 Expenses. Total Date. 1880. .a g 3 3 a •a 1 a a "a 3 p 'O 8 Left Charlotte for Statesville, policing the line be- tween Cliarlotte & Statesville, N. C 47 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 3 2 00 g oo 10 00 11 72 2.90 90 12 00 13 00 14 11 11 11 11 00 15 11 11 11 11 I. 00 oo 16 ' ' from Dallas to King's Mt'n, N. C 15 60 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 l.Oo 1.00 1.00 60 17 00 ]8 00 19 11 11 11 00 20 11 45 ! 45' 21 00 22 21 85 85 23 00 24 00 25 44 1.75 j 75 ''G OO 27 00 28 11 11 11 00 29 U 11 11 _ OO 30 11 U 11 1 00 31 25 1.00 1 00 2.82 111.55 1 31.00 1 1 i 42 55. A similar vouclier to last. " Deputy collector, or collectors' clerks' monthly account for services,'^ "witli following variations : for "the period commencing- January 1,1881^ and ending Jan'3" 31, 1881, inclusive"; " amount expended each day" in table, "averaged at $1.00 per day, $31.00"; "miles travelled" in table, carried out " 282." No "interrogatories" attached. No "itemized statement of duty performed, miles travelled, and ex- penses incurred" accom])auying. A similar vouclier to last. " I)iii)uty col lectors' or collectors' clerks' monthly account for serv- ices," with following variations: For " th(> i)eriod commencing Feb'v 1st, 1881, and ending Feli'y 28, 1881, inclusive." In table, "no mileage allowed"; "no expenses allowed." Answers to "interrogatories" similar to last, except — "2." "In no other business." "3." "In noway." *'4-lo." Written across: "1 am ('iiii)loyed as special deputj^ collector in (Jtli (list. N. C. in detecting Ovo suppressing frauds in int. revenue of the IJ. vS." THE SIXTH DISTRICT OF NORTH CAROLINA. 87 Itemhed statement of duty performed, mllen traiieUed, and exx)enfie» ineurred. Date. 1881. Feby, 4 5 6 9 10 11 12 13 14 15 16 17 18 19 20 22 23 24 25 26 27 Duties performed and places visited. 28 At Statesville PolicinR- from Statesville to Charlotte, N. C Keuiaiued iu & around Charlotte in disebarjieof otKcial 'luty -. - Absent in obedience to summons to attend superior court as State's witness Returned to Salisbury More discoveries as reported to headquarters Policing from Salisbury to Statesville Policing from Statesville to Charlotte - Eeniained in & around Charlotte in discharge of official duty Expenses. gbi) ^° Total. ExiiiiUT 20. (107— Revised.) storekeeper's monthly account. (Oriyinal.) The United States {Office of Internal Eevenue) dr. to E. B. Drale. P. O. adilress : Dols. Cts.. For ser^ice,s us storelvceper iu the 6tli collection district of tlie State of N. C. duriug the muiith of January, 1876, 26 days, at $b per day 130 OO statement. (This stateuieut must indicate the date of each day of seryice.) Days of month. 1 1 2 S 3 1 4 1 5 1 6 1 7 1 8 9 1 1 S 1 10 1 11 1 12 1 13 1 14 1 15 1 16 S 17 1 18 1 19 1 20 1 21 1 22 1 23 S 24 1 25 26 27 111 28 1 29 30 31 d Days and parts of days employed 1 S 1 Salary, cue hundred and thirty dollars. I hereby certify and nialie oath that the above account is for services in my officiar capacity as storekeeper, under the internal revenue law of the United States ; that 88 COLLECTION OF INTERNAL REVENUE IN the services have been actually reudei-ed as charged ; and tLat the account is in all respects just and correct; that I have received the full sum therein charged to my own use and benefit, and that I have not paid, deposited, or assigned, nor contracted to pay, deposit, or assign, any part of such compensation, to the use of any other per- son, nor in any way, directly or indirectly, y)aid or given, nor contracted to pay or give, any reward or comijeusation for my office or employment, or the emoluments thereof. I further swear that, during the above period, neither I nor any member of my fam- ily has received, either personally or by the intervention of another party, any money or compensation of any description whatever, nor any promises for the same, either directly or indirectly, for services rendered or to be rendered, or acts performed or to be performed, in connection with the internal revenue; norpurchased for like services or acts, from any manufacturer, consignee, agent, or custom-house broker, or other person whomsoever, any goods, wares, or merchandise, at less than regular retail market prices therefor : So help me, God. (On the margin :) Revised Stats., § 1790. Dated at Statesville, this 2 dav of Feb'v, 1876. E. B. DRAKE, Storekeeprr. Subscribed and sworn to before me. WM. J. COITE, De^j'iy CoWt: ITiereby certify that I have examined the above account; that the above-named storekeeper was necessarily employed each of the days charged for; and that the ac- count, in all other respects, is correct and in accordance with the law. J. J. MOTT, Collector 6th District, State o/ N.' C. Received of J. J. Mott, collector and disbursing agent of the 6th district of No. Ca., the sum of one huodred & thirty nru dollars, in full payment of the above ac- count. Dated at Statesville, this 2 day of Feb'y, 1876. E. B. DRAKE, Storekeeper. Tlie otlier voiicliers, scheduled as follows, are similar to tlie i'oiego- ing, except the variations noted below. No. of acc't. 11921a 12303a 12f35a 12834a 13197a 13290a 13.'-.91a 13H32a 14102a 14247a 14.')73a No. of vou. Kame. Month. B. Drake ' January, 1876 . I'cbriiary, " . March, ' " . Ajji'il, " . May, " . June, " . July, " . Auii'ust, " . St'])lcinboi-, " . October, " . Novc7nber, " . December, " . Jaiuiary, 1877. February, " . Marcli, " . April, May, " . June, " . July, " . Au;;ust, " . Se)ileniber, " . October, " . November, " . Dc<'eniber, " . January, 1878. Februaiv, " . March, " '• . A])ril, " . May, " . ifune, " . July, " . Au;:ust, " . Seiitembei', " . Am't. 130 125 135 125 135 130 130 120 104 104 104 104 108 90 108 lOU 108 104 104 108 100 108 104 104 108 !)(> 104 104 108 100 108 108 100 THE SIXTH DISTRICT OF NORTH CAROLINA, 89 No. of No. of acc't. vou. H809a 38 38 " 62 15026a 72 " 69 " 120 ir)205a 127 127 " 95 l;)489(i 80 " 67 " 23 15722« 35 39 i " 46 1 159."i7«. 43 " 45 1 " 46 lemort 44 49 lG729a 44 ' icri77« 38 " 34 i " 40 lCG29a 41 " 46 " 47 16941a 48 ■' 55 " 55 17163rt 54 47 '■ 44 17iGl« 37 " 20 19 17473a 27 28 " 37 17(169(1 34 25 29 Name. E. B. Dralic . Month. October, 1878 Novi'iubcr, " December, ' ' January, 1879 February, '' March, April, " May, ' ' June, " July, " August, " September, " Octobei', ' ' Kovember, " December, ' ' January, 1880 February, " March, " April, " May, June, " July, August, " September, " October, " November, ' ' December, " January, 1881 Febiiiary, March, " April, " May, June, " July, August, " September, " October, November, " December, " January, 1882 Febiuary, ' ' March, " Am't. 108 l04 104 ]()8 96 104 104 108 100 108 104 104 108 100 108 108 96 108 104 104 104 108 104 104 104 104 108 104 96 108 104 104 68 104 108 104 104 104 108 104 96 108 Yoncber for Jaiinary, 187G, E. B. Drake acting as " storekeeper." Vouchers from February, 187G, to March 1877, hu'lusive, affidavit signed as " general storekeeper." Vouchers from April, 1877, to September, 1878, inclusive, affidavit signed as "general storekeeper and ganger." Vouchers from Oct., 1878, to Mar., 1882, inclusive, affidavit signed as " storekeeper and ganger." Committee adjourned until Saturday, June 21, at 10 a. m. Washington, T>. C, ^Saturday, June 21, 1882. The committee met at 10 a. m. There being no witnesses ready to testify, an adjournment was ordered until Monday, June 26. Washington, D. C, Ju)ie 26, 1882. The committee met at 2 p. m. J. iST. Summers sworn and examined : By the Chairman : Question. Where do you reside? — Answer. T live twelve miles above Statesville, N. C. 90 COLLECTION OF INTERNAL REVENUE IN Q. Were you ever in tlie service of the luterual Revenue Department ? — A. Yes, sir. Q. lu what capacity"? — A. Tliree-aiul-a-Lalf bushel capacity was the distillery I staid at. Q. Were you a storekeeper ? — A. Yes, sir. Q. How long- were you in the service ? — A. I was in about two years, or a little better. Q. From when to when ?— A. I commenced in March, '71», I believe — the 4th of March, the first I did. Q. State what distilleries you were at, and in their order. — A. I was with J. Bowles & Son, and Q. D. Freeze's. Q. Only those two? — A. Yes, sir. Q. Do you know anything about the storekeepers dividing their pay with distillers? — A. Xo, sir. Q. Did you divide yours with any of the distillers? — A. No, sir. Q. Were you asked to? — A. No, sir; I don't know that I w^as. Q. What was said to you on the subject? — A. I don't know that ever anything particular was said about it — any way to me. Q. Nothing whatever that you can remember? — A. About all I ever did hear said that looked like that was, that I ought to divide, because they were not making anything at the distillery. Q. Who said that? — A. Mr. Bowles said that to me. Q. You ought to divide? — A. Yes, sir. Q. Because he was not making anything; the distillery was a small one — three and a half bushels'? — A. Yes, sir; about all he ever said to me. Q. What were they selling whisky at?— A. From- $1.20 to $1.30, I think, while I was there; generally retailed some at an average of about 81.60 a gallon retail. Q. With wiiom did you board ? — A. I boarded at home. Q. You did not board with the distiller ? — A. No, sir. Q. Were you ever called upon to pay any political contributions ? — A. Yes, sir. Q. IIow much? — A. Never no certain amount named to me when it was called for. Q. Who called on you for it? — A. It seems to me that Mr. Coite said I ouglit to help to pay some money about campaign purjioses; it ap- liears to me like it was him or Colonel Sharpe. Q. Who is Mr. Coite? — A. lie staid there in the office. Q. In what capacity? — A. Collector, I believe. Q. Did Dr. Mott ever say anything to you about it himself? — A. No, sir; I don't believe he ever said a word to me about paying anything t\)V that purpose. Q. Vou made an affidavit before A. D. Cowles, dei^uty clerk, did you not ? — A. Yes, sir, (^. Are the contents of that affidavit true? — A. Yes, sir. (}. In it you say you asked Dr. JNFott lor your (;h<'ck, who told you '' that the election was coming on and he would have to call on the boys to help him a little"? — A. I asked him for the check which was held back ; he s<'nt me to Mr. Gillespie about it — to go to him and see for wlijif the check was held bacjk. il What cheek did you ask for?— A. Either March or May, 1880; not certain wliieh of the months it was foi". (^. What tinu^ was thai, when you asked him for your check? — A. It was soiM<', liMMi after it was ectfully, H. X. DWIRE. ■Suhscribed and sworn to before me, JAMES MARTIN, Special Dejmty CoWr. Q. I have before me, in this executive document, what seems to be ii certificate from yourself (quoting) : Sweet Bomk, TredeU Co., X. C. This is to certify that I subscribed to the campaign fund of the Republican State executive committee of North Carolina, during the State and national campaign of 1880, through Dr. J. J. Mott, the sum of $104.00 dollars, the same being a check for my salary as storekeeper and ganger for the month of September, 1880, and that the same was freely and cheerfully given, and would be again under like circumstances. This 2r)>h day of April, 1881. IJespectfullv, J. N. SUMMERS, Stk. rf- Gr. A. That is the way that I had to answer the Commissioner, that it was •only three or four dollars for campaign i)urposes. Q. Did you sign that certificate ? — A. I had to do it. (). ])id it contain the truth? — A. He said that was all that was used out of it; they kept the money back; said that was all that was used foi' campaign puri)oses. Q. AVhat, the .$104 ?l— A. The three or four dollars; they kept the check back; the campaign was over. (}. You say they asked you to sign a letter that you paid but three or lour dollars for cam])aign pur])oses ? — A. Yes, sir, they did. (}. J>id you sign such a letter ? — A. I told him if that was all I was willing to sign it. (}. 1 )id you sign it ? — A. I signed it, and wanted the rest of what they h:i(l left, if llicy did not use but three or four dolhirs of that check. (). ]>ul this says >!l()l .' — A. if tlu'V used it for that ])urpose I was willing for it ;ill logo there; bul tins let (cr came from the Commissioner wanting ns to state liow mucli w(» liad paid in. And he wanted me to .statne. 'I'liat is true ? — A, Yes, sir, (^. J'^recly ;ind chcerlully given, and would be under like circum- stances giv(ni again ? — A, Yes, sir. Well, then, here that letter came from Dwifctor me to copy that I only paid in tlirce or four dollars — only that used. He told me he did not know where my nu)uey was — what tlu^y luul done with the balance of the money. What 1 wanted to know was if they only used that miu-h for campaign purposes. I wanted the balance of tliat money. 1 was willing to pay in as much as any one, THE SIXTH DISTRICT OF NORTH CAROLINA. 97 as far as I was able ; but if only that much used for campaign purposes, I wanted the balance. Mr. Pool (to the chairman). There is following this certificate, which has gone into evidence, an affidaAat of Mr. A. B. Gillespie, which I wonld like to ai)pear also as an exhibit. The Chairman. We had Mr. Gillespie sworn, but not asked about that. Mr. Pool. We might bring him back, as this is new matter not gone into before. (Marked Exhibit 23.) State of Nokth Carolina, Irtdell Co. : A. B. Gillespie, being duly sworn, deposes and says, that some time during the sum- mer of 1880 he requested J. N. Summers, S. & G. to;* the 6th dist. of North Carolina, to endoi'se a check, for what month or for what amount he does not now remember, for campaign purposes, and that at the time of doing so he stated to said Summers that it was a voluntary contribution, and no one was requested to contribute exctspt those who would do so willingly and cheerfully. Thereupon said Summers did of his own accord endorse a check for his salary for one month, which check this deponent sent to the State executive conunittee through J. J. Mott. This deponent farther swears that he made no such remarks to said Summers as ' ' Dou't say nothing about this at all, let it all go, if anybody gets anything we will be the men"; that the only cou- versatiou between him and Summers was, that the money would be used for campaign jiurposes, and that all assessments made by the national executive committee would be settled out of the check then endorsed after it had been sent to the State executive committee. All that part of said Summers' affidavit, made on the 19th day of Oct. 1881, before A. D. Cowles, D. C, which states that, "soon thereafter the deponent met the said deputy collector, A. B. Gillespie, and acting on information given him by the collector demanded of him, the said A. B. Gillespie, the said check for the amount for services rendered as above stated, the deputy collector denied the allega- tion of J. J. Mott, collector, that he had it, asserting that he had nothing to do with his (deponent's) check," is utterly false. The said Summers has never in his life had any conversation wuth this deponent iu regard to chect;s supposed to be held by J. J. Mott. A. B. GILLESPIE. Sworn to and 8ubscril)ed before me this 20th Jauuarv, 1882. J. FRANK DAVIS, Dep. Collector. By the Chairman: Q. Do you know if these contributions were general; if all the officers were called upon just as yon were? — A. Billy Morrison was called on. Mr. Pool. That is the witness who was examined here ? The Chairman. Yes, sir. Q. What was your understanding whether it was general or not; some of your men were not selected out I suppose ; what did Mr. Gillespie tell you? — A. I don't know whether general or not — about signing these checks ? Q. Yes. — A. He said, they were all doing- it. Q. That was the general understanding ? — A. All the boys were sign- ing them. Q. Su])posing that all the officers on duty, deputy collectors, clerks, special deputies, storekeepers and gangers, general storekeepers and so on, had all contributed a month's salary, about how much would it have amounted to ? — A. I have no idea ; if I knew how many there were, and what their salaries were, all of them, might tell. Q. You can't say, then? — A. No, sir; I can't say. Q. Do you know what was done with the money? Did you ever get any acknowledment from anybody, that your money had been received, and how it was appropriated? — A. Nothing more than they said they used it for campaign purposes, when I inquired about it. Sometime S. Mis. 116 7 98 COLLECTION OF INTERNAL REVENUE IN after I found out that was a check — they wanted me to indorse, that piece of paper. I did not see anything^ on it. Q. You don't know what the campaign purposes were; they never told yon ? — A. Xo, sir. Q. What was the general understaiuling through the country around about storekeepers and distillers dividing? — A. I don't know. I have heard a good many talking about it outside. They said they believed they were doing it. That was all I ever heard said about it. Q. What was the general understandiug about distillers having the choice as to whom should be their storekeepers? — A. I declare I don't know. They wanted men that they were acquainted with, all I knew. I reckon, rather than have men not acquainted with, they would not run. Sometimes they would send men oft" in different neighborhoods that they were not acquainted with. Q. Do you know whether the distillers had any word or say-so as to who should be their storekeepers ? — A. I don't know anything about it. I have known them to go and ask for storekeepers, and sometimes get who they wanted and sometimes would not. Q. Are you any kin to P. F. Sommers ? — A. IsTot that I know of. Q. How came you to make that certificate that has been read here; who applied to you for it ? — A. Which one ? Q. The one dated the I'.jth of April, 1881, in which you saj' you sub- scribed *101: to the campaign fund. — A. It appears to me like it was Gr. W. Sharpe. I won't be positive about it. Q. This certificate you were not sworn to, were you ? — A. Is^o, sir. Q. It did not profess to be sworn to. You say Mr. Sharpe applied to you for that? — A. It appears to me like it was him. Q. Do you know why he wanted it? — A. Xo, sir; I'don't. Q. Did he tell you? — A. He did not say what he wanted it for. Q. You don't think that is the true date of it — April 25, 1881? — A. Xo, sir; I don't, without I am badly mistaken. Q. Did you write it yourself, or somebody write it for you? — A. I think I copied it off. I ani not certain whether I copied it off, or just signed it; wcmld not be positive. Q. Did he have one prepared for yon to sign? — A. It appears to me like that I copied one off. Q. Then lie had it prepared for you, and re(iuested you to copy it? — A. I won't be positive about it, whether I only signed it or just copied it off. Mr. Pool (to the chairman). The original of the certificate we will bring up in tlie morning. I would like for it to be put in, and to ask the witness whether it is in his handwriting, body and all. The Chairman. He ought to have the opportunity, of course, to tes- tily about it. Adjonined until 1 p. m,, Tuesday, June 27, 1882. WASHINGTON, D. C, Juuc 27, 1882. Tiie c(»ininitt(M' met at 1 i>. m. Mr. Pool. Mi-. Chairnian, we find tiiat the written certificate of Mr. Sninriifis, from w liicli tiiis copy was ])rinted, that was read yesterday, is on lilc in the, department, and lias not been returned to Dr. Mott. The (Jhaiu.man. ^ on will not want Mr. Summers, then, on the stand "2 THE SIXTH DISTRICT OF NORTH CAROLINA. 99 Mr. Pool. Xo, sir. We wish to ask Mr. Ilamsay some questions at some time, if yon are going to pnt him on the stand. Tlie CHAiii]\rAN. Yon can aslv liiin at any time. I have detained him nntil I could get certain documents from the dei)artment. J. A. liAMSAY recalled and cross-examination resumed : By Mr. Pool : Question. How long were you engaged in the revenue service ; from what time to what time ? — Answer. From the 1st of March, 1872 — that is, you mean with Dr. Mott ? Q. Yes, sir.— A. From the 1st of March, 1872, until the 18th of Feb- ruary, 1871. Q. At what time was Dr. Mott made collector ? — A. He took the office the 1st of March, 1872, or about that date. All the papers were dated from the 1st of jNlarch. Q. Previous to that time you had been under Mr. Wylie ? — A. Y"es, sir. I was with Mr. Wylie nearly five years. I think I went with Mr. Wylie the 19th of March ; from the 1st of March until the 19th it lacked that much of being live years. Q. Y^ou are very well acquainted with the district, both before Dr. Mott went in and since. You reside in it ? — A. I live in the district, but don't know a great deal of the working of the revenue service since I left it. Q. Will you state some of the difficulties of collecting the internal revenue in that district, the disposition to resist the law ? — A. There was a disposition to evade the law. It was rather in a clandestine man- ner, not much oi)en resistance. It was evasion more than resistance. Q. How was it along in 1872 and 1873, under Dr. Mott ?— A. It was the same way. Q. Was it safe for a revenue officer unarmed and unittended to go about in the district ? — A. I went all over the district and did not fear any point of it. Wilkes County was thought to be the worst country, and that was in the territory occupied under Mr. Wylie. I have traveled through it under Dr. Mott, and made collections all over Wilkes ; went up to Mulberry Gap, and across over, following the chain of mountains to Eeddies Eiver Gap. Sometimes the mountains were so steep that you had to get down and lead your horse. Q. Was there a great amount of illicit distilling in those mountains ? — A. A great many ran in a small way up there. Q. The illicit distilling was then generally done in small stills ; of what capacity, would you say ? — A. The largest illicit distilleries ever broken up were abont seventy or eighty gallon stills; in bushels I don't suppose more than one or two bushels capacity per day ; they did not run regularly, but in a clandestine manner, always on the watch out for some person observing them. Any one going up in that country a little neatly dressed, with papers in his pockets, was spotted at once. Q. Have you an idea how many of these illicit stills were seized un- der Dr. Mott's administration? — A. I could not say; there was (piite a number of sales made; could not give any definite idea. Q. Has tlieie been an improvement in that respect umler his admin- istration ? — A. I can't say, after leaving the service. Q. Don't you know what the condition of the service is now? — A. No, sir ; I can't say I do, Q. You left in '73, then? — A. Eecently my business has been enlirely foreign and outside of that. For the last year I have been out of the lower i)ortion of the district and np in the western part of the State. 100 COLLECTION OF INTERNAL REVENUE IX Q. You recollect, of course, that Mr. Clarke was sentup into Dr. Mott's district and shortly after he was made clerk? — A. Yes, sir; I knew he came up there. Q. To act as clerk ? — A. Yes, sir. Q. Was that for the purpose of iustiuctnig- the officers? — A. 1 cau't say as to that. Q. How to carry on things'? — A. He came up there, as I understand, to assist Mr. Cowles in opening the books, but shortly after Cowles got the appointmeut of clerk to the federal court, and Clarke was made clerk in charge of the books. Q. Mr. Clarke had previously been in the internal revenue service! — A. So I understood. Q. Did you know he was sent up there by Mr. Perry, the supervisor, who recommended him'? — A. I so understood that Mr. Perry sent up a clerk, one acquainted with the service, and thought he understood it. Q. Do you recollect it was at his instance, and by his recommenda- tion, he was sent there and put under Dr. Mott? — A. No, sir; I could not say as to that; I only heard him speaking of him as one competent. The only conversation 1 heard about it was between Mr. Wylie and Mr. Perry. Q. What was that ? — A. It was in regard to the competency of the different bookkeepers. Q. What did the supervisor say? — A. Mr. Perry thought Mr. Clarke well acquainted with it. Q. Now, you acted under Dr. Mott for about two years, did you not ? — A. Nearly two years. Q. Did you sometime act as clerk ? — A. For a week I did. (^. At one time? — A. Only one week. Dr. Mott wrote to me to come up there; that he had been compelled to discharge Clarke, and take charge of the office until he could make other arrangements. He spoke to me about it in Charlotte, a few days before, to come up and take charge of the office. 1 told him 1 did not desire to do it. I wanted a more active life. He wrote me to Salisbury, and I took charge of the office. Q. About what time was that? — A. I don't recollect now; sometime in '73; in the summer, I think. I liave the original letter, if it is a mat- ter of any material consequence, from which the exact date can be as- certained. Q. Was ]\rr. Clarke addicted to drinking? — A. That was the reason he was displaced at that time, on account of drunkenness. Dr. Mott told nu' in Charlotte he was drinking so that he could not stand it. i^. W'iis INIr. Clarke afterward restored? — A. Yes, sir; I think he was. (I. Do you recollect whether he still drank after being restored ? — A. I don't think he drank to that excess as he had before; at least I did jiot see it. I don't recollect of seeing him drunk after that. Q. Did you not have cliarge of the olhce sometimes for the i)urpose of selling stamps and things of that kind? — A. No, sir; there was some stamp books ])la(ted in my charge, but I did not have charge of the stiimps in the ollii'C Q. Don't you re(;ollect you were there in charge of the safe, and sell- ing st;(ini)s on moi'e than one occiision? — A. I never had charge of the safe ;it any time, <^ven during the time I was in charge of the oltice, when we were engiiged in taking ;ni account of the condition of the office. Clarke still retained the key of the safe. THE SIXTH DISTRICT OF NORTH CAROLINA. 101 Q. You were still there about the office? — A. About tlie office twa years. Q. Doin. lie was the clerk:'— A. Chief clerk. J>y Mr. rtioi.: (} These tMo iccords w oiihl ciiiltrace all that you collected and all you ga\'e i-eceipts loi' ;' — A. Yes, sir. (}. Vou feel certain of that? — A. Yes, sii'; you see the I'ccoi'd of the THE SIXTH DISTRICT OF NORTH CAROLINA. 103 taxes I deposited at Ralei^li wii« l>nt on Form 102; those I gave to Mr. Clarke; was just a ineinoriiuduiu of tlie collections. Q. You mean to say no taxes bad been collected that \yere not ac- counted for, ami no receipts of yours out? — A. I think I can very safely say that none not accounted for. Q. You do sav so !— A. That is to the best of my knowledge and be- lief. Q. You can say then positively, can you not, you collected no money that you have not returned ? — A. I think I can say so very safely ; but to say that in the whole transactions of two years everything is posi- tively correct, I would not for that length of time ; but so far as all reasonable correct business transactions are concerned, I think they are correct. Q. How could you collect taxes and give receipts you did not re- turn ? —A. Well, there was one part of the time the moneys were depos- ited and stamps got afterwards. I asked Dr. Mott to allow the stamps to be taken out at that time and sold to the parties direct, but he re- fused to do it, and in that way there was some confusion. I don't be- lieve there was any in my account. Q. 1 am talking about when you gave receipts and before the stamps. — A. No, sir ; I don't think any thing incorrect through it. I had stubs and made my returns from tlie stubs. Q. Did you ever collect money that was not on the stubs ? — A. Xo, sir ; I always filled out the stub and receipt at the same time. Q. You never collected money and gave receipts not put on the stubs. — A. 1^0, sir. Q. You are able, then, to say you did return, and account for, to the collector, all the money that you collected, in the way of which you have been speaking ? — A. Yes, sir ; I gave him a list of all the collec- tions I made. Q. You are able to say that positively ? — A. To the best of my knowl- edge and belief he got a list of the whole. I have no knowledge of any whatever he did not get a list of; that is the list filed and deposited in Raleigh, and the list given to Clarke. On three difterent occasions — I cannot locate the time just now — I gave Clarke returns to make up, and some of these were listed from my stubs. Of course I did not put them on 102 when given to him. Q. It seems to me very clear, and I suppose you can say it with en- tire positiveness, that you could not aftbrd to tear a receipt off and not put it on the stub f — A. Of course not. Q. You did not do it 1 — A. ^o, sir ; I recollect very distinctly that Mr. Crane submitted a lot of stubs to me taken out of the collector's office when turned over to Dr. Eamsay ; he asked me if I knew any- thing about the collections, and to assist him to verify them by the list to see if accounted for or not. The next I saw of these stubs they were in the hands of Mr. Beach. There was quite a number there that had not been accounted for. Q. Were they yours ? — A. Xo, sir. Q. I am speaking of yours entirely; these stubs would show every receipt you tore out and gave ? — A. Yes, sir ; all bound up in the books. When I filled out a receipt I filled out a stub to correspond. Q. The stubs would show every receipt you gave? — A. Yes, sir; all accounted for in Form 102, or on the list to Clarke. By the Chairman : Q. You got copies, did you not, of those vouchers for your accounts 104 COLLECTION) OF INTERNAL REVENUE IN of '72 and '73, against Dr. Mott, for use in the suit with him ? — A. Yes, sir ; I got copies of the vouchers together with an abstract. Q. Did you come on here and search in person for them?— A. Yes, sir. Q. When was that ? — A. It was during the year '74 ; I think in Sep- tember. I don't recollect positively the time. Q. Were those amended vouchers on file then that appear here now ? — A. Xo, sir ; I came here — to explain the whole matter — first in March. I wrote to the department in regard to this matter, and they answered my letter by asking me to report to them the amounts that Dr. Mott had paid. I replied to the letter and did so. They responded to that letter by referring me to Dr. Mott, saying I had made the con- tract with him and the department had nothing to do with it. That was the substance of their letter. I came on here to examine into it and to see what was the case. I liad an attorney here at that time employed in some other matters. By Mr. Pool : Q. Who tVas he ? — A. Mr. Richards. He went throngh the depart- ment with me and looked the papers up. Mr. Kestler found out I was coming on here and asked me to look for his 815. Says I, " Give me a statement of it,'' as 1 had heard he was emplo.> ed at the rate of $80 a month and 8lo was still due, he only having received $65. Says I, "Make out a statement of what was due." We were in the post-office at that time and he sat down and, with a pencil, wrote out a statement of his case and brought it to me. Says I, " The department will not trouble themselves with any statement made out in pencil.'' Mr. Bringle, the postmaster, was standing by, and said, '' I will take 'and copy it off in ink." Mr. Bringle wrote it and qualified Kestler, and I filed that paper with the First Comptroller. Then the First Comptroller gave admission to us, examined his files, and said his office did not show how it was, and referred us to the Filth Auditor's office, where the papers were found. Kestler's affidavit is on file in the First Comptroller's office. By the Chair3IAN : Q. What is the date of the copies jou got ? — A. The last cojues I got was a certified copy of vouchers, one in 1874 and the other in 1877. Q. Did the copies contain the amended vouchers in 1877 "? — A. No, sir ; the amended vouchers were not in there. The copy of November .3, 1877, is here. Dr. ]Mott procured it from the clerk of the court at Salisbury, and he took it out of the records of the court there. Q. V>'\\1 you look at this amended voucher and abstract and see if tlicre is any mark of any (.-lerk about the office of the Commissioner or any (late by which you can say when they were filed? (Exhibit 13 handed to witness.) — A. Do you have reference to Form 03? Q. The amended abstract and amended voucher. — A. I see nothing here (indicating back) on it, only the nund)er "71(iC." Q. Will you say if the originals do not have an entry or stamp by the clerk in the ('ommissioner's office (Exhibit 14 handed to witness)? — A. Tlie original for the quarter ending December 31, 1872, 1 see, has a stamp on the b;ic,k of it. (}. Can you read it ! — A. No, sir ; T can't. (}. Is it'not tlie " Fiftii Auditor's Office". '—A. The '^Fii'th Auditor's Ollicc, May 12," I think it is. The number on that is "(5715." The ann'iid<'d coi r('S|K»ndiiig is the one Just htolvcd at, lOxhibit 13. This is tlie aniciKh'd al)s(r;ict, and i tlon't se<' anything in it except that number " 71"' in |tf'iicil. THE SIXTH DISTRICT OF NORTH CAROLINA. 105 Q. Will you look and make tlie same examiuatiou of tlie other vouch- ers for the quarter ending March 31, 1873 ! Examine the original voucher and abstract and the amended voucher and abstract, and see if one has marks of the office of the Commissioner upon it, and if the other has not (Exhibits IG and 17 handed to witness). — A. On the original (Ex- hibit 16) I find that there are two stamps on it. One is very dim, but I think the date is April 19. Q. That is on the "original" you mean. Exhibit 10? — A. This is the original, "Internal-Eevenue Office, April 19," and " Fifth Auditor's Office, June IG, 1873." The former is so faint I can't make out the year. Q. See if there is anything on the amended abstract voucher! — A. (Exhibit 17.) I find nothing on the amended abstract, only the numbers in pencil " 71GG." I find no office stamps on it. Q. State whether j^ou find the vouchers for that quarter in the same condition (Exhibits 10 and 11 handed to witness) ? — A. On the " original," Exhibit 10, is the stamp of the "Internal-Revenue Office, October 8, 1873," I think it is ; can't be positive about it. I am not certain whether "3" or "2"; and on the "amended" (Exhibit 11) I see nothing but the pencil figures " 71G6." Q. In relation to those stubs that Mr. Pool examined you about, you say you did find a good many that needed explanation °? — A. That was on another lot of stubs. Q. Not on yours ! — A. Xo, sir. Q. Did you examine them ? — A. I looked over them with Mr. Crane, I told Mr. Beach, when he came tome, that the only way he could ascer- tain with any certainty was to go to the otfice and compare with the books there. I had no means of ascertaining them correctly, but I had at my own instance got a book and had entered into the books from the list; but somebody had surreptitiously taken it from my office, and where it was I knew not. If we had that book they could very readily find out all about it, but after the book having been removed by somebody from my office, we were without any means of ascertaining. He went to the office and made the examination, and came l)ack and said there was some money in somebody's pocket. Q. They did not find it in yours ? — A. No, sir. None of the taxes was in my handwriting, or received by me. By Senator McDill : Q. I call your attention to " Compensation Account No. G875," pur- porting to be the "Fifth Auditor's report on an account for salary, com- missions, and expenses of J. J. Mott, collector' for the Gth district of Nortli Carolina." I want to ask you if those vouchers, tbe amended abstract and all, do not bear the office number of " G875" ? — A. No, sir ; different numbers. Q. I do not ask you about the particular ones, but whether those papers do not all bear the office number of 6875 ? — A. I don't know ex- actly what that number is for. Q. You see what it is for — " Compensation Account No. G875 '? — A. Yes, sir. Q. I will ask you if the amended voucher or abstract does not bear that number as well as every paper connected with the case ? — A. No, sir; the amended has a different number. The "amended" voucher (Exhibit 17) you see here has "71GG" while on here. Exhibit 16 (indicat- ing pencil marks on back of exhibits), on the " original," it is G875, cor- responding with this number of the adjustment. Q. I want to call your attention to certain pencil figures on Exhibit 106 COLLECTION OF INTERNAL REVENUE IN 17, the " amended," aud on Exhibit IC, the "oiigiiial" ; you see them, do you, sir? — A. Yes, sir. Q. I ask you if the peucil figures in each case do not rei)reseut the amount claimed in the written abstract ? — A. Well, this is the original, aud the footing's here (indicating bottom of columns) amounts to what! suppose is the footing of this (indicating the addition of the several sums). Q. That (the latter) is the aggregate of these amounts written in the columns, is it not ? — A. I think so. I will sum it up to see. Yes, sir; the aggregate is in that penciling. Q. Is not that also true of the penciling in the "amended" Form C3? — A. (Calculating.) Yes, sir ; that is the aggregate. Q. I call your attention to an exhibit which I will put in, purporting to be a statement of account with Dr. Mott for the period extending from January 1, 1873, to March 31, 1873, as made by the Fifth Auditor, aud ask you to turn over here to the difference and just read the "state- ment of dift'ereuces." (Marked Exhibit 21.) No. 6875. Treasury Department, Fifth Auditor's Office, June Will, 1873. I hereby certify that I have examined and adjusted an account between the United States and J. J. Mott, collector for the 6th district of North Carolina, from January 1st, 1878, to March 31st, 1873, for salary, commissions, and expenses, and tind him en- titled to credit as follows : By salary for said period, special allowance dated Aug. 16th, 1872 . 7.30 00 " amount deposited during said period *$!60, 33.5 00 " commissions ou .§ , at 3 per cent. $ " " $ , at 1 per cent. 8 " " $ , at I per cent. 8 " " $ , at I per cent. 8 " " $ , at i per cent., being amount of tax- paid stamps sold, under act of July 20, 1868, as pei l)Ooks of coupons tiled with the revenne account for said period .§.. " special allowance for expenses of oftice 1,325 00 " stationery and blank books " postage 43 70 " express and depositing money " advertising $2, 118 70 / special allowance in lieu of l,illl 00 ions ^ '■ I also find liim chargeable as follows for amounts received from the collector acting as disl)ursinn' auent : For salary " commissK Notk. — Ex]>('nseH of administering ollice for said ])eriod as i)er Form 63, fili'd lici;-with : Dciiuties, 81,275.00 : clerks, 84.5(t.OO ; rent, 86(1.00; fuel, .89.00; ligiits, 8:?.0(J; ad vert's. .8 — ; miscel., li? ; total, $1,797.00. Balance due the collector $207 70 $2, 118 70 The siiid lial.'iuic to be carried In The credit of the collector as disbursing agent on 1h(! IxMiUs of the Register of the Treasury. The accounts and v<»uchers an- heri-with tiaiisuiit ted for the decision of the Comp- troller theleon. J. II. EL A, Auditor. To I lie I'll;- 1 CuMi'i i.'oi.i.Ki; oi- Tin; TiiKAsruv. THE SIXTH DISTEIOT OF NORTH CAEOLIXA. 107 Slatemeiit of diffvrciicts. Balance claimed per account duo collector $C)70 70 " found due per adjustment " " 207 70 Difference to collector's debit 47*2 00 Explained thus: Expenses of office charged in ^(^ $1 , 797 0() " " " credited Ijerein, lieing limit of allowance. .. 1,325 00 $472 00 Fifth Auditor's Office, June 16, 1873. Examined and stated by — E. C. CLARKE. Comptroller's Office, July 7, 1873. Examined and reported by — CHAS. G. BIGGS. Q. He mentions that the collector in his statement claims 8079.70 as due him, and the adjusting' officer finds only $207.70 due, making a dif- ference in the collector's account of $472 from what he claimed. Q. How is that explained in the account ? — A. It is explained that he had put in vouchers for more than he was entitled to. Q. The expenses of the office amounted to how much f — A. $1,797, the ex]ienses of the office. Q. He was credited by the Fifth Auditor's Office with how much ? — A. He was credited with an expenditure of $1,325. Q. Which accounted for the difference of the $472, did it not ? — A. Yes, sir. Q. 'Sow glance down at the bottom of the page and tell me wluit date that account was stated. — A. It Avas stated in the Fifth Au- ditor's Office June 16, 1873, and in the Comptroller's Office July 7, 1873. Q. I will ask you if it is not apparent that when that account was stated the amended voucher, showing the amount to be allowed, was considered by the clerk and by the Fifth Auditor in stating the ac- count 1 — A. I don't know that I understand your question. Q. I ask if it is not apparent, from tbe examination of the papers, that the amended abstract and original abstract were both considered by the clerk who stated that account for the Fifth Auditor, and who afterwards signed it ? — A. Thei'e is no evidence there that the amended voucher was ever considered. The allowance was considered, but no evidence that the amended voucher was considered at all. Q. See if the footings are not $1,347 in the amended voucher. — A. That was the allowance. Q. And exactly the footings in the amended voucher? — A. The foot- ings in that voucher is just what the allowance was. Q. You can see it over there in pencil? — A. It was just the amount that was allowed. Q. What is the amount of the footings in that amended al)Stract of vouchers, as shown by the pencil marks there (indicating) ? — A. The amount of the footings is $1,347. Q. Now, what was the amount allowed? — A. $1,325. Q. I ask you if it is not evident, from an examination of these pa- pers, that the "amended" voucher or abstract was the one upon which the allowance was made — the final" balance was stated instead of the original ? — A. From reference to that date when this amended voucher was sworn to, it is not evident, for the allowance was made, as stated here, in 1873, while the amended voucher was sworn to in 1874. 108 COLLECTION OF INTERNAL REVENUE IN Q. You think, then, it was put in since? — A. Yes, sir. Q. Upon what basis was the $1,325 aHowed ? — A. That was on the allowance made to the collector to run the district. The original bears date as "subscribed and sworn to this the 10th day of April, 1873"; the amended "subscribed and sworn to this the 2Ist day of Septendier, 1874." The adjustment bears date of the Fifth Auditor's Office, June IG, 1873; and the Comptroller's Oftice, July 7, 1873, And it could not be possible for a paper made up in 1874 to be present and taken into consideration in adjusting an account in 1873. Q. I will ask you if a credit was not allowed upon the basis of the amended voucher ? — A. The same allowance as called for there is made every quarter. Q. Have you any knowledge of the mode in which accounts are set- tled in the' Fifth Auditor's Oftice? — A. I have not of my own direct knowledge. I have from hearsay; from what I have heard the Commis- sioner say, and other persons. Q. I ask you if it was not the duty, if you know — you may not know — of the clerk having charge of this account, when it was stated and allowed for $1,325 instead of 81,797, as claimed by Dr. Mott, to notify Dr. Mott of the difference, and in what it consisted ? — A. The clerk, as soon as settlement was made, transmitted that report to the collector at once. Q. He would tell him in substance, Dr. Mott, you claimed 8G79.70 due you. We say only $207.70 due; there is a difference of 8472 between us and you. That difference is to be charged to the expenses of the office. On your original voucher is 81,797. We only give you credit for 81,325 ? — A. That is exactly what they say. Q. Was it not the duty, then, of the collector, and 'the right thing for him to do, to send an amended voucher in accordance with what they had allowed? — A. Xot necessary for him at all. It would be no evi- dence; no getting any credit on that account. Q. If it should' turn out to be the fact that he did that, the presence of this voucher there at this time, and its absence when you looked, would be one evidence that the ordinary business course of the office had been completed ? — A. As a matter of course, when the collector would submit his quarterly statement and the department refused to allow it, he would see at once he would have to foot it out of his own pocket or sto]). Q. These ollicers having power over him and his disbursements, he would b{! a])t to comply with their final order? — A. He would be com- pelled to c(uiiply so far as that question was concerned. (^ And the proper thing for him to do would be to put in this amended voucher for what they had allowed him to run the district ? — A. That would not be necessary at all. Q. If not a necessary thing, it would not be improper? — A. ^o, sir; not improper. Q. And the i^resence of such an amended abstract or paper would be no evid('n(;e of any imiuoiniety or anything wrong in tliat accounf? — A. Not if it contained the same names as the original did. (}. And if theie was a nanu^ on the original, the amount claimed for him Iteiiig absolutely thrown our, so that nothing was allowed for that in«ii\ idnal, the absence of that mime wonld not be any evidence of any- thing wi'ong ? — A. It (le[)enamn such a gov<'rnment." THE SIXTH DISTRICT OF NORTH CAROLINA. Ill Q. He wauted you to leave the cistern-rooin key with him ? — A. To leave the cisteru-rooin key. I told liini I could uot do that. He never charged ine au unreasonable i)rice for l)oard. Q. Do you know whether any others had been in the habit of leaving the keys ? — A. I think 1 took up the keys of one or two distilleries wheu I started around, from the storekeepers, Q. From whom did you take up the key ? — A. 1 think I took it up from Dr. L. W. Tate ; he was at A. J. Smith's distillery. [ think he had re- ceived the cistern-room key; am certain he had. Q. You say Tate had it ? — A. Yes, sir. Q. Was he uot entitled to it "? — A. No, sir; the ganger. B^Senator McDill : Q. What was Tate ? The Chairman. He was a storekeeper. The Witness. I know I took up one key if not more; not certain. I think at A. J. Smith's the storekeepers kept the key of the warehouse^ and the ganger kept the key of the receiving-cistern room ; at that time there was a .storekeeper and a ganger to each distillery. Q. Do you know anything about the dividing of stills, one large one into smaller ones ? — A. No, sir ; I don't. Q. That had not been done when you left in '75 ? — A. Nothing of that kind that I know of. Cross-examination by Mr. Pool : Q. Did you agree to let all over the ^oO go to the purpose indicated by Dr. Mott f— A. I think so. Q. Did you ever pay it ? — A. No, sir ; after I went into the service. I did not know anything about the revenue service, what was legal or ille- gal, i was not called on, and drew what I was entitled to, and never said anything to Dr. Mott or he to me about it. Q. Really you did not pay it ? — A. No, sir. Q. All you have contributed to party purposes was the $10 twice f A. About that amount ; yes, sir. Q. And you were in the service about two years ? — A. No, sir; I was in the service over a year, I think ; perhaps eighteen months. Q. And you were kept very constantly engaged, assigned somewhere all the time ? — A. The last four or live months, I think, I had but very little work. I don't remember how long I was idle. At first I had work as mncli as I wanted. Q. Y"ou discharged your duties faithfully and honestly while you worked ? — A. Tried to do it. Q. Y^ou were not turned out, but resigned ? — A. I resigned willingly. Q. Dr. Mott did not request your resignation? — A. No, sir; he told me if I wanted to resign it was all right, and he would give me a pface again if I wanted it, I think he said. Q. And your reason for resigning was that it kept you away from home too much? — A. One reason. Q. And it was disagreeable to be engaged in such a business? — A, Yes, sir. Q. And then you had some importunities now and then from distil- lers to do things you did not want to do? — A. Yes, sir. Q. That was another reason, and taking all the reasons together you resigned voluntarily, of your own accord ? — A. Yes, sir ; it is certain I resigned of my own accord. Q. And yon had assurances of work — to go back at some time after- 112 COLLECTION OF INTERNAL REVENUE IN wards f — A. I tliiuk he told me so — that I could have a place again if I asked for it. / Q. Do you recollect the purpose Dr. Mott indicated the money was to be applied to ? — A. ]So, sir; I don't; it seems to me that he said — but not positive about that — that there was some money needed to as- sist some editors. Q. For political purposes ? — A. Yes, sir ; I think so ; I suppose it was, Q. But he really never called for it, and you never paid it ? — A. He never asked me about it at all. Q. And you discharged your duties as a faithful officer, resigning of yoiu' own accord ? — A. Yes, sir. Q. And you had an assurance that if you wanted to come .llJack you could come? — A. I think he told me he would give me a place again if I wanted it. By the Chairman : Q. You made out your bills for the full amount due you? — A. Yes, sir. Q. When you found out* what your rights were under the law for dis- tilleries ? — A. Yes, sir. Q. Did you ever have any idea why you did not get any work towards the last part of your appointment ? — A. I don't know what was the rea- son. I thought perhaps Dr. Mott thought I was a little contrary, as I would not go to one distillery, but one assigned to me, and that would not pay me to go. He told me I ought to be glad to get it ; that other gangers would take it. I told him to let them have it. Q. Have you not assigned as a reason for not gettiitg any work that you would not accede to, or comply with these terms the distillers wanted ? — A. No, sir ; I don't think that I ever have. Q. You never gave that as a reason "? — A. No, sir ; I think not. By Mr. Pool : Q. Dr. Mott did towards the latter part offer to send you to one, two, or three distilleries as a ganger, and you declined to go to them ? — A. Yes, sir; the last distillery I was assigned to. I was not assigned to three ; I understood him to say three. I heard that day one stopped, and another was to stop in a few days. Q. And then that you were not assigned was not Dr. Mott's fault, but you did not go to the distilleries in the latter part of your time; he did name tlie distilleries he wanted to assign you to, but you were not satisfied with them ? — A. Yes, sir; that was the last assignment I had. Q, He was trying to assign you ? — A. T would not go — did not want to gb, at least. Adjourned till Wednesday, June 28, 10 a. m. Washington, D. C, Jnne 28, 1882. Tlic (•oiiiiiiiltce met at 10 a. m. TIk! Collowing witnesses were, introduced and examined for Dr. J. J. Mott, ex-collector of the sixth internal-re\'enue district, North Caroliua: M. (i. Camphkll sworn and examined. By Mr. Pool : Question, Where do you reside ? — Answer, Statesville, N C. THE SIXTH DISTRICT OF NORTH CAROLINA. 113 Q. What is your age 1 — A. Twenty-nine years old. Q. How long have you been residing in 8tatesville '! — A. About seven or eight years, I believe. Q. That is since about 1874? — A. I think I came there about the first of 1874. Q. What business are you engaged in there ? — A. Merchandising-. Q. Are you acquainted, generally, with the j^eople around that sec- tion ? — A. Yes, sir ; generally acquainted. Q. Have you been much over this sixth collection district ? — A. Not ■xery much, except Iredell County and adjoining counties. Q. Have you observed the general condition, to any extent, of affairs connected with the collection of internal revenue around that district, or have you heard of it ? — A, Well, all that I have heard — I have never heard anything wrong in any way, at least I do not know anything from my own personal knowledge. Q. Do you know that some six or seven years ago there was a great ■deal of disturbance in the community, and trouble about blockading, and arrests of blockaders, and about matters connected with the resist- ance of the revenue law ? — A. Yes, sir ; there was a great deal of block- ading going on in that district. Q. Tliat was six or seven years ago? — A. Yes, sir; a good deal more than now. Q.. Were there a great many arrests made? — A. Yes, sir; a great many were made. Q. Was there a good deal of public disturbance among the commu- nities ov^er the district from that cause !— A. Yes, sir ; I think there was. Q. That is not so much the case now ? — A. Not near so much block- ading up in this district, I do not think. Q. There seems to be a better state of public feeling generally? — A Yes, sir ; a great deal better. Q. There are fewer illicit distilleries ? — A. I do not think there are near so many as some years ago. Q. How do you attribute the change for the better in the last few years? — A. I can hardly tell you, unless it was the raiding force that they had in the district there that put it down. Q. Do you know whether Dr. Mott has been diligent in trying to im- prove the condition of affairs in the district ? — A. J think he has. Q. What you hear others say, and what is generally reported by everybody looking on and observing; that you have a right to say here. — A. I think that is the general impression. Q. That he has exerted himself to improve the affairs of the district, and has succeeded? — A. Yes, sir; in the revenue business, and in put- ting down blockading. Q. And he has succeeded in improving it to a very great extent ? — A. I suppose that is the cause of it. It is improved a good deal, anyway. Q. Do you not hear your customers and others with whom you come in contact in the district, s])eak of Dr. Mott's administration of the in- ternal revenue in that way ? — A. Yes, sir; often. Q. Does there seem to be a public and general impression in the com- munity on the subject, whether the district is improved, and he is a good, Lonest collector, and has done his duty? — A. The general impression is ■he is a good collector and has done his duty. I think that is the gen- ■eral impression. Q. What is Dr. Mott's general character in the community there as a man "? — A. His general character is good ; very good. Q. You mean for integrity ? — A. Yes, sir. S. Mis. 116 8 1 14 COLLECTION OF INTERNAL REVENUE IN Q. Morality ?— A. Yes, sir. i}. All that makes up a good and reliable citizen '? — A. Yes, sir. Q. Does he stand very high in that regard? — A. He stands very higli, sir. Q. ])o you know any one who entertains a different opinion from the one you are now expressing of him in that respect t — A. He has a few enemies in that district. I have heard them speak to the contrary. Q. Were they men of equal standing with Dr. Mott ? — A. I do not know. He has many enemies there of very high standing; some tew of different political opinions from him. Q. Do you know whether that enmity is of a political party character — connected with jioliticsf — A. Yes. sir; I think so. Q. Has Dr. Mott been an active working Republican in that district? — A. Very nuich so; he has been a very active politician. Q. You know he is chairman of the State committee of the Republi- can party ? — A. Yes, sir. Q. And has been for several years; I mean for some j^ears back ? — A. Yes. sir; I have forgotten how long now, when he was put in. i). Let me ask you, as we have got your general statement — you say there was a good deal of resistance to the collection of internal revenue from illicit distillers, and things of that kind, and there was some en- mity to Dr. Mott as a politician and an active jjarty manager — what lias been the course of the opposite party in regard to the internal reve- nue generally, in their intercourse with the i>eople, and in their speeches to the people, and everything else ? — A. The Democratic party is always- running the revenue departujent down in every way t}iey can. (). Denouncing it? — A. Yes, sir. (}. Denouncing tiie law itself? — A. I'retty generally. Q. And d«'nonncing the manner of its execution? — A. Yes, sir. (). Denouncing the officers who execute it? — A. Pretty generally j not so much so now as a few years ago. Q. Ha,s the course of the Democratic party managers in that district in their appeals to the people raised a popular sentiment against the collection of the revenue there ? — A. Yes, sir; that has been the case. Q. And one calculated to obstruct Dr. Mott and his officers and em- barrass them in their duties? — A. Yes, sir; a few years ago it was very mucli so. (^>. You say that Dr. ^Nlott has managed to make all that less, or some- body has? — A. Some one has Ixmmi the cause of it. He has been the colh'ctoi- and has control of the revenue business, and is a leading poli- tician tlicrc. (}. l)o.\on know that in recent ycais he has been appointing some Democrats to ol'lice in that country .' — A. Yes, sir. (}. That seems to give some satisfaction to the Democrats in the dis- trict? — A. 1 cannot say as to that. (). At any rate the denunciation of him and his otticers, the law, and the <*.\ecution of the law, has become less? — A. Oh, yes, sir. Q. Since tlx're has been a diminution or lessening' of this denuncia- tion on the part of the i)arty jxditicians down there, has the state of jniblic feeling be(;om<' moie favorable? — A. I think so; yes, sir. (}. i\nd the obstruction and <'nil»arrassment to Dr. Mott anck- adiiig and illicit distilling ; that you had heard there was a great deal less of it and no ivsistaoci^ To the suggestion of Mr. J*o()l, yo'ii said it was attributable to Dr. MotTs conciliation, good conduct, i)rudence, and all that sort of thing. — A. I did not say it was altogetiier so. 1 sup- posed so. Something was the cause of it. <^. iJave \()u not also heard, on the other side, that distilling was so urrange iiot think that I ever heard that. Q. The editor was a storekeeper, was he not ? — A. He was a general storekeeper — E. B. Drake, I think, sir. Q. Did you ever know of his doing any business as a general stoie- keeper ? — A. Oh, yes, 1 have noticed him going out frequently. Q. Going out ? — A. Yes, sir. Q. You do not know where he was going to ? — A. I understood that was liis business. Q. The distilleries around Statesville were not in his department, were they ? — A. I do not know. They are not now ; I do not know whether they ever have been or not. Q. Do 30U know where his department extended, and what it was ? — A. I do uot believe 1 can tell you. Q. You have seen him frequently riding off, and understood that was his business there ? — A. Yes, sir. Q. How often did you ever see him do that ; as often as once a month ? — A. 1 cannot tell you how often ; I did not take any notice. Q. He did not seem to be employed actively every day on anything of that kind ? — A. I think not, at least not from town every day. By Mr. Pool : Q. Who is the editor of the Statesville Ameri(;an ? — A. E. B. Drake, I believe. Q. How old a man is he ? — A. I suppose he is nearly sixty years old. Q. How long has he been editor of that paper? — A. A great many years ; I do not remen\ber ; 1 do not know how long. Q. He is a man of high character ? — A. Yes, sir. Q. For integrity ? — A. Yes, sir. Q. Aud general worth as a citizen ? — A. Yes, sir. Q. And reliability ? — A. A reliable, good citizen. 120 COLLECTION OF INTERNAL REVENUE IN Q. He is a geutlemauly man in his bearing- and in all liis relations t — A. Yes, sir. Q. Did you ever hear it alleged tliat Mr. Drake neglected his duties as a genei^al storekeeper? — A. I do not know that I did, sir. I have heard a storekeeper or two speak of doing his work off' some distance from town, his home. Q. You have gone over, in the cross-examination, these rumors a little more in detail than I drew them ont. Did these rumors derogatory ta Dr. Mott's administration of affairs come fj^om the members of the Dem- ocratic party ? — A. Yes, sir; generally, I thuik. Q. And were more rife during election times t — A. Yes, sir. Q. Do you ever take much part iu elections yourself? — A. No^sir; not very mnch. Q. Have these rumors affected Dr. Mott's standing or character at all? — A. I think not, sir. Q. If they were generally credited, really they would have affected his character, wonld they not? — A. Yes, sir; I think they^ would; not noticed there iu that conntry much. Q. You think his high character has not been in any degree affected by the rumors circulated in this way ? — A. J think not, sir. Q. Would you draw from that the conclnsion, that })eople did not be^ lieve the rumors really ? — A. Well, sir, I do not tliink they are believed there as a general rule; probably some people believe them. Q. During the eight years you have been doing business in Statesvllle you have received in payment of grain the checks of storekeepers three times; that is, three checks, two from one man and one from another? — A. Yes, sir; that is all the checks I ever received. Q. Have you not heard of anybody else having received them in the sanu' way ? — A. I think not. Q. How much were those checks for — I mean each one? — A. Se\ enty- two or seventy-flve dollars, I think. Q. About that each ? — A. Yes, sir. Q. Were these checks of the storekeepers negotiable, and passed around from hand to hand on being indorsed, like a bank check? — A. Yes, sir. Q. A man would cash a check for a storekeeper, and would then own it, and pass it around from hand to hand ? — A. Very often the store- keepers got the merchants to cash the checks for them. (). This check, then, wonld belong to the merchant ? — A. Yes, sir. i}. The merchant can buy what he pleases with it, if an^^body takes it from him? — A. Yes, sir. (^. Among the denunciations against the revenue and revenue ofticersi in the distiiet was one — I mean at one time some years ago — that they diart <>i' th(! ((Hicers ? — A. Yes, sir. (). Was not that also calculated to prejudicH'the minds of the people ■111' tlic (;ommunity against them ? — A. Yes, sii'. THE SIXTH DISTRICT OF NOKTH C.VltOLlXA. 123 Q. AVas uot all this calculated to eiiibaiTa.ss Dr. Mott in the admiuistra- liou of his office ? — A. Of course it was. Q. Aud to obstruct the proper adiuiiiistratiou of the collectiou of the internal revenue? — A. Of course it was cah-uhited to embarrass iiim. Q. That was five or six years ago '! — A. Yes, sii-. Q. Has the matter improved since then ? — A. There has been consid- erable improA'ement in the revenue service there : nottiie number of illi -cit distilleries now ; there used to be a ijreat man v runninji' in my county, Yadkin. On one occasion, I think in 1870, there was a raid made in there, by a special force, and about twenty distilleries destroyed in one town- ship. I don't think there are any blockade distilleries running in that county now. I don't know of any. Q. Can you give any estimate of how many illicit distilleries Dr. Mott has had destroyed since he has been there ? — A. 1 have not the slightest idea. Q. Do you think they could be counted by the hundreds ". — A. Yes, sir ; could be counted by the hundreds very easily. Q. Until he finally su<;ceeded in breaking them up, or breaking them up in your county ? — A. Yes, sir; broken u}); \ery few, if any, running. Q. Is there a better feeling in the community now t — A. Yes, sir; there is a better feeling in the community, and there is a better state of so- ciety around there. In this section of country where there was so much blockading going on, a great manj' government distilleries are running' now. Q. Was the number of legal distilleries increased because they were allowed to run on less capacity than they used to be ? — A. Y'es, sir; more than when they were required to run on a large scale. I will give you an example : in Yadkin County, I think, there were only two distilleries of that kind at that time, but since the capacity has been reduced, and stills of small capacity are allowed to run, I think last year there were between forty and fifty legal distilleries operating in that county. Q. Did you ever hear the rev( nue denounced because it did uot allow them to run stills of small capacity, so that poor men could distill ? — A. Yes, sir; 1 have heard that raised as an objection to the law ; that a poor man could not distill any, and only a certain class could afford to put up those distilleries, the machinery was so expensive. Q Xow, since they allow them to run Sh and 4 bushel ca])acity dis- tilleries, there has been a great improvement, you say ? — A. Y^es, sir. Q. Do they denounce that on the stumi» ? — A. No, sir; don't de- nounce the small capacity distilleries, but say they could not run with- out the storekeeper gave a part of his wages to the distiller. Q. It is un])opular to do that? — A. Rather dangerous business to do that just now. Q. What is the general character of the revenue officers under Dr. Mott? Y^ou have been associated with them and are one yourself. You can speak of those around you, if not yourself. — A. I think their gen- eral character is good; in fact, before even a man can get an appoint- ment in the revenue service, he has to be recommended by substantial citizens that his character is good. The collector will not appoint them unless well recommended as to being sober, industrious, and men of good moral character. Q. Do you know the general character of Dr. Mott personally through that district? — A. Yes, sir; I think 1 do. Q. State what it is. — A. It is good. Q. Good for integrity and truthfulness ? — A. Yes, sir. 124 COLLECTION OF LNTEHXAL REVENUE IN Q. Does he stand as liigli as any one f — A. Yes, sir. I tliink he stands- as high as any man in that section of conntry. Q. Has his character suffered from these reports of corrui)tion in of- fice, in the estimation of men? — A. i^o, sir. Q. You woukl draw the conclusion, therefore, that they are not be- lieved by the substantial good men of the community? — A. I should think so, for they have not affected him. They are not credited as a general thing. Q. Are not these rumors, accusations, and charges looked upon by sensible and moderate men of character, as more political clap-trap for party purposes than anything else ? — A. I believe they are. Many re- gard it that way. Q. Could you say, generally, that there has been a very great improve- ment in that district, under the administration of Dr. Mott within the last four or live years ? — A. Oh, yes, sir. Q. And in the whole system of collecting the revenue ? — A. No doubt about that; there has been considerable improvement in collecting the revenue, and in the ofhcers. Q. Is there less denunciation now than there used to be on the i)art of politicians ? — A. Y'es, sir; I think there is. Of course there is more or less, and always will be; but I think it is not as general as it was. Q. It is dying out? — A. Yes, sir. (}. Do you think the present improvement in the district and in its; condition will make it less of an item in the coming canvass in North Carolina? — A. Y'es, sir; I think less of an item. Q. Have the people become more reconciled to the revenue and less^ prejudiced against it? — A. Y^es, sir; less prejudiced against it. Q. Then Dr. Mott's efforts have broken down those obstructions to a very considerable extent? — A. Yes, sir; I should take that for granted. The collector had the management, and it was owing to his efforts that that result has been brought about. Q. Do you know of any other cause that would bring about such re- sults ? — A. No, sir; can't say I do. Q. Has he appointed Democrats to office in the district within the last five years ? — A. Yes, sir. (}. Has that had a good effect? — A. Yes. I think it has had a good effect; had a tendency to keep some i)eople from abusing the revenue officers, especially the men holding positions. Q. Did you ever know a storekeeper to divide with a distiller? — A. 1 liave known of one case, because reported — not of my own personal knowledge; nothing of the kind. Q. Did you ever sec a man of character who did know of an instance that he said he did ? — A. No, sir ; 1 don't know that I did. Q. You mean to say, all of it is a mere matter of rumor f — A. Y^'s, sir; a mere matter of rumor. Q. Do you know the ehiiracter of Mr. Drake, the editor of the States- ville Ameiieaii, wiiose name was called in (piestion some time ago ? — A. Yes, sir ; 1 think I do. Q. What is his character? — A. His character is good. Q. Does any one have a better character in that country — stand in any better reputi^ '. — A. No, sir; never been questioned at all. i). Did you ever hear a charge against Dr. Mott's character for in- tegrity and ui>rightness .' — A. No, sir. Cross-examination by tiie Chairman: (^>. What an' your politics ! — A. 1 am a Kci»nblicaii. THE .SIXTH DISTRICT OF NORTH CAROLINA. 125 Q. You liiive told Mr. Pool, that the people generally regard the de- iiunciatiou hea[)ed u])on the internal rev^enue, as political cla])-trap. 1 will ask yon if the Democrats regard it as clap-trap, or only the Re- l)ublicaus so look ui)on it ? — A. 1 think the ])eople generally, because several of the men who so deuounced it liave taken i»ositions. Q. They have come iuto the lleveuue Department ?— A. Yes, sir; taken i)laces. Q. And it ceased to be clap-trap for them ? — A. Yes, sir. Q. I will ask you if the Revenue Department in that sixth district is not a political machine, and its officers do not run the Republican party of the district? — A. They do everything they can for the success of the party. Q. Don't they organize its conventions, primary meetings, and furnish the money for tlie expenses and i)ayment of delegates ? — A. 1 don't know that they furnish any money for the payment of delegates; they always do all they can to organize the Rejniblican party. Q. Did you not see it reported in the newspapers that Dr. Mott had boasted of a gain of 7,000 in that part of the district ? — A. Yes, sir. Q. Is it not fair for the Democrats to denounce that as a political concern, when it is a political concern ? — A. They may denounce it just iis they please. Q. Is it not fair to denounce it according to what it is considered ? — A. I don't think it is fair to denounce a gain they make. Q. Is it not fair to use every argument to make them unpopular, not l)ecause they are revenue otiicers, but because they are ijoliticians, and run the machine ? — A. I can't say it is fair to use every argument. Q. Every honorable arguments — A. That might be fair to use every honorable argument. Q. I will ask you if some years ago, especially, the revenue officers were not a rough set, and rode over the country with pistols, and lorded it with a high hand over the people accompanying it with oppressive, tyrannical and insulting conduct? Was not that the complaint generally of the people? — A. I don't know that it was. I have heard in some cases where the revenue officers acted wrong ; never heard any special case ; Just rumors ; just the same as was denounced heretofore. In the section of the country I live, I never heard of an insult by a revenue officer being made to any one, or of their doing anything except their duty in destroying these stills. Q. You said that a few years ago under the old law there were only two or three stills in Yadkin County ? — A. Only two. Q. And that now" there are between forty and fifty ? — A. Y^es, sir. Q. Y'adkin County is a Republican county ? — A. Yes, sir. Q. What proportion of the violators of the law do you suppose were Re[)ublicans ? — A. I can't answer that question. (}. You would not pretend to say that the Democrats were all the men who violated the law ? — A. I would not say they were all the ones block- ading or violating the law. Q. The Democrats would hardly influence the Republicans to violate the law ? — A. I could not say as to that. Q. You would not say the political speeches, and so on, which I used to make, when I called theoi "grasshoppers" encouraged the Republi- cans to go against their own party ? — A. They might encourage any- body who had the natural disposition to go that way. Q. Is not that Brush Mountain country over there, where it is said to be dangerous for officers to go, a Republican country ? — A. That is iu Wilkes Countv. That is considered a close countv. 12G COLLECTION OF INTERNAL REVENUE IN Q. That is a Uriisli Mountain connty ? — A. I am not well enongh acquainted to give any answer to that. (}. How about Fox Knobs in your county, between Ham])tonville anil Jonesville ? — A. I think that is a Kepublicau township ; not positive about that. Yadkin is very strongly Republican ; don't think there is- but one or two townships in the county not Republican. Q. That is my understanding. I know I have felt it so ; don't you know that one of the accusations made against the internal revenue was, that they arrested and terrorized over the people just before an election t — A. No, sir. They always said then, they could do just asthej' l)leased before an election. Q. Those amiable could do as they pleased, but those stubborn were more than usually i)ersecuted. Was not that the accusation ? — A. 1 don't remember that accusation at all. Q. Don't you recollect one of the charges was, that the marshals and the deputies Avould go around with saddle bags full of warrants signed in blank for persons that had unsettled taxes, ready to serve them on whom they pleased ? — A. I have heard all those charges made. (). You have heard the charge, you say, that storekeepers divided with distillers ? — A. Yes, sir. Q. And that division was sometimes in money, but mostly in board^ was it not ? — A. I don't know, sir, how the division was made. Q. You heard these rumors ? — A. Yes, sir. (). Now, if a man could run a 3.^ or 4 bushel still with a storekeeper^ and the storekeeper dividing his pay Avith him, that was better than blockading, was it not ? — A. I don't know; it depended how the block- ading still was allowed to run. Q. It was a steady thing, and the other was subject to loss ? — A. Yes^ sir. (). It wouhl be, taking all the risks into consideration, a better busi- ness, in order to make money, to run a little still, and get your store- kef^per to divide ? — A. Yes, sir; a man could make money that way, I thirds. (). How much credit does a man deserve for quitting rascality and making more money by pretending to be honest? — A. 1 am not here to state whether he deserves credit for it or not, but the facts as they are. i). The percentage in the cost of collecting the revenue is greater than it used to be there, is it not ? — A. Y^es, sir; I expect it is. I don't know. 1 think that the government realizes more with the increased <'X])ense, than it did when the exi^euses were not so great, because the collections amount to more. (^. Rut the i»ercentage in the cost of collecting is much more than it used to be. Now do you think that the better state of feeling and more general obedience to the law, results from any conciliatory policy on Ihe part of Dr. .Mott, or does it originate in the fact that you have stat«'d, that the terms have been made easier for the distillers f — A. 1 will just tell you my oi)inion. Where there were so many of those blockading distilleries running, for instance, in my county, they were always afraid of being icported, ants ? — A. Yes, sir. Q. And the result is that the government gets more money '? — A. Out of it now than when the expenses were not so nuich. Q. There is more in it? — A. Yes, sir. Q. And so this change to the government and to the service has had the efilect to make the expenses greater? — A. Yes, sir; under the pres- ent system the expenses are increased by this mode of distilleries start- ing up, through more storekeepers being on duty. Q. You think then that the permission to allow the running of dis- tilleries of snmll capacity has resulted in increasing the amount of money the government gets? — A. Yes, sir. -njt Q. And it is a benefit to the morals of the community? — A. Yes, sir; in the way I stated a moment ago. Q. It has made the community more peaceful? — A. Yes, sir. Q. And has stopped the circulation of these various reports, and mere denunciation, in some measure ? — A. Yes, sir; the state of affiiirs is a great deal better than a few years back. Q. The revenue matter then would not be so likely to enter as an ele- 128 COLLECTION OF INTERNAL REVENUE IN iiient into the campaign as before? — A. I suppose it will always enter as an element, but not have so much intiuence as it had. Q. It is likely that the denunciation of internal revenue in that dis- trict, would not be of as mnch benefit to the Democratic party in the cam- paign, as it has been heretofore ? — A. ]S^o, sir; don't think it will ; a great many Democrats are running distilleries. Q. Do you know whether distillers have to give a bond every month f — A. They have to give a bond for all the whisky in the warehouse every mouth. They reuew the distiller's bond once a year; give a new bond *veiy year. Q. Is there any difficulty in giving large bonds in that country? — A. Yes, sir; considerable difficulty in getting them. Q. A man who ran a distillery of large capacity would have to give a much larger bond, of course? — A. Of course, in proi)ortiou to the amount he makes. (). By allowing the running of small distilleries it enables men to give bonds that could not otherwise do so? — A. Yes, sir; otherwise they le. Q. And tliat Avithont dividing witii storekeepers ? — A. Yes, sir; Avitli- out dividing with storekeepers, Q. Do yon think the business of distilling, in small distilh^ries, is a good and protitable business in that district? — A, Yes, sir ; about as profitable as any business a man can be engaged in, in that section of country. Q. The running of one of these small distilleries legitimately, without any violation of law? — A. Y^es, sir. By the Chairman : Q. I forgot to ask you if yon knew of any stills being divided in Yad- kin County ? — A. I don't know of a single case of that kind. Q. Did the men who run the large stills, when the new system was introduced, continue to run the large stills ? — A. There were two of them. One of them, Benton, quit business altogether, and went into tlie whole- saling. Williams running only his distillery ; he just cut down the tubs, reducing their cai)acity, using the same building, etc. Q. You say you never heard of any one well-authenticated case of a storekeeper dividing his pay with a distiller ? — A. No, sir. Q. Did you hear what ]\rr. Thomas Templetou swore, that lie paid Tom Coo]ier 830 a month for board ? — A. No, sir ; 1 did not hear any- thing about it. Q. What is the usual price for board in that county ? — A. I really don't know ; I think from about $8 to 810 aiul $12. It depends a good deal upon a man's situation, Q. Was there any farm-house, or respectable place of that kind, where they would ask $30 a month for board f — A. No, sir ; I think not. Q, So if a man swore he paid a distiller $30. a mouth for board, that would be a case of dividing, w^ould it not ? — A. I don't know, sir, Q. What would you call that ? — A. I would call that liigli ])rices for board, Q. Did you never hear a distiller, or a storekeeper either, say that they had divided ])ay ? — A. No, sir; never did, and I never heard of a case of high prices for board. By 3Ir, Pool : Q. Suppose a storekeeper had a horse ? — A, If he had a horse then I should think that would be a little high. By the Chairman : Q, $30 for a nuui ai^d horse would be considerably high ? — A, AVould be right high price; yes, sir. By Mr. Pool : Q. Don't you know Mr. Templeton did keep a horse ? — A. I don't know anything about that circumstance. Q, Was it not very conunou for storekeepers to keep a horse to ride home on? — A. Y'es, sir; especially if assi.Lned to any distance from home, Q. Do you know wliere Tem])leton lives ? — A. I don't know him it all. S. :Mis. HC 130 COLLECTION OF INTERNAL REVENUE IN By the Chairman : Q. Was there not some sort of amnesty got up by the government and introduced by Mr. Cbapmau, a government agent, for past offenses, if men would come in and take out a license f — A, I don't know. There were some men the district attorney susi)ended judgment for, by their paying the costs, and starting u}) goverimient distilleries. As to a gen- eral amnesty, I don't know as to that. Q. Don't you know that Mr. Cbapmau made that arrangement with men that were blockading, not to indict them, or anything of tliat sort, if they agreed to start regular distilleries, and tliey might get off on the payment of the costs? — A. Only heard of that one case. Adjourned until Thursday, June 29, 10 a. m. Washington, D. C, June 29, 1882. The committee met at 10 a. m. A. H. Brooks sworn and examined for the government. By the Chairman : Question. AVhereis your present residence ! — Answer. I am stationed at Greensboro, N". C, at present. My home is in Newark, N. J. Q. Are you connected with the internal revenue service? — A. I am, sir. Q. In what capacity? — A. As internal revenue agent. Q. That is known in our country as special agent ?—^A. No, sir; they are different; they are in the customs service. Q. Your proper designation is internal revenue agent? — A. Yes, sir. Q. How long have you been in North Carolina ? — A. I have been there several times, but the last time most of the time since August, 1880, with some exceptions ; I have been home and assigned to duty in other places a little of the time. Q. Have you given much attention to the condition of the service in the sixth district ? — A. Not a great deal of my time has been gi\en to that. I will explain how 1 have been on duty there. 1 was sent down in July, 1880, to make some arrangements, or to see if some arrange- ments couhl be made — some plan adopted to break up the illicit tobacco traflic. I suggested a system to the Commissioner of Internal Ivcvenne, which lie ad()i>ted. and I have been in charge of that most of the time. I was in charge of that until January a year ago, when I was instructed to talerate registered distilleries was not for the purpose of get- ting them in trouble with thegovernment ; for at that time many of the distillers liad this idea. For the purpose of inspiring confidence in the distillers, no doubt their friends, or i)ersons in whom the distillers had confidence, have been recommended for the i)osition of storekeeper and ganger, and assigned to duty as i)er recpiest of distillers." What did you base that upon ? — A. Just on my belief at the time. Q. And a belief is generally founded on something, Mr. Brooks ' — A. Yes, sir. Q. Y"ou had some information that made you have that belief'^ — A. Y'es, sir; 1 had information from the other officers that satisfied me there was something in that. Q. Vou say further: "In many cases storekeepers and gangers board with the distillers, and it is said that these officers pay one half their salary for board, when other ])eople not interested in the dis- tilling business would board them for ten dollars a month." — A. Tliat was the report I got. Q. Xow could you furnish the committee with the-names, so that it can iuipiire into tlie exact state of the facts ? — A, 1 don't know tluit I could ; 1 i»robably could if 1 had all my memoranda here. Q. Y'ou go on to say : "All these distilleries are very snudl and can be closed with little or no loss to the distiller, thus sto])ping the pay of the storekeeper and ganger, so that in a country like this, where so many of such officers are enii)loyed, I should not be surprised to find some who would comi)ly with the wishes or demands of the distillers in order to draw i»ay from the government." — A. Y'es, sir; that was an unfortunate thing about the law. The law does not pay them anything if they do not run ; if not on duty ; they are paid per diem. Of course when a dis- tillery closes it shuts off the storekeeper's pay, and so it is all over the country. Q. Did you ever examine or have examined officially by your officers the condition of the distilleries ami warehouses throughout the dis- trict ? — A. Yes, sir; 1 have been doing that work recently. (^. AN'ith a view of ])revent ing fraud.' — A. AVe examined them Avitli a view of seeing that they complied with the law and regulations. AVe ins]>ect them on a regidar form as ])i(»vided by the de]>artment for that puriKtse. It has on it quite a number of (juestions ; 1 tliink some twenty or o\er. Q. About locks, etc. ^' — A. Locks and i)i[)es painttnl, receivers, etc. It requires an answer to all those (juestions. (}. NN'liat I want to know is, what condition did you lind those things in when you made an official examination of them? — A. The distd- h'l ies .' i). \'es. — A. There were some in bad eondil ion, others in fair eomli. tiou. W'hereNcr we found an.\ thing wrong, it was reported ami the col- lector nolifu'd, ami the oiiginal repent forwarded to the de]>artment. THE .SIXTH DISTRICT OF NORTH CAROLINA. 133 Tlieu they wrote a letter back instructing compliance witli the law in re- gard to tbose things found wrong. ]<^or instance, if the pii)es were not painted — the law requires the pipes to be painted — different colors, black tor spirits, white tor water, blue for low wines. A great many of these little places do not have them painted. In many instances they had been painted, but the paint had worn off, and they were not painted when the olticers were there. Q. Were a great many warehouses reported to you as insecure, and could be easily entered ? — A. Some of them ; yes, sir. Some iu that dis- trict and in the others. Q. Were any reports made to you of the insufheiency of the locks iu those various places which were required to be loc^ked ? — A. In some in- stances I think the officers recommended additional locks for certain places, and sometimes boxes for locking the cocks up. Q. Were any reports made to you of storekeepers leaving their distil- leries and being absent a considerable part of the day ? — A. Yes, sir. Q. Were reports made to you of the insufticient gauging and the fail- ure to weigh and measure meal and material for the distilleries, and so on ? — A. I don't recollect about the weighing of meal. In most of these little distilleries the meal was brought on the premises on the day it was used In some instances they have boxes provided where they lock the meal up. I don't remember any case where the meal was not weighed. There may have been seme, however. Q. Taking it altogether, from your knowledge of the condition of the distilleries and warehouses, the efhciency and knowledge of their duty of the officers, etc., what proportion of s]>irits produced in the sixth district do you think the government gets taxes for, at a rough guess '? It is only from your information that I wnnt it. — A. The distilleries of that State are surveyed at two gallons and a half to the bushel. They xire required to produce SO per cent- of that amount, which is two gal- lons. And a majority of them, I think, i)roduce that amount; that is, two gallons for every bushel of grain that is used. Q. In fact and in truth, now, how much more than two gallons is pro- duced from the bushel ? — A. That depends npoii the distillers appa- ratus, and the knowledge of the business which the distiller has. In these districts there are some men who will produce over two gallons ar.d a half to the bushel. The majority of them produce two gallons, and some of tlu m produce less than two gallons ; while in the West our distillers who have the facilities produce four gallons to the bushel, and l)ay taxes on that amonnt. These small distilleries have nothing but little copper stills; but Western distillers use steam, and mash large quantities; some of them as high as tive thousand bushels per day. (}. You have still not answered my ([uestion. What proportion of the whisky made by these stills does not pay taxes to the government ? — A. I am not able to answer that question. It is my belief about it — I believe they get away with some of it. I believe there are others that do not know enough — they are careless, and do not sufficiently under- stand how to get out of the grain what is in it. I cannot form an esti- mate of the amount of whisky that does not pay taxes. Q. Has it not been reported to you that many of the distillers believe that so they make but two gallons to the bushel, all over that amount was clear to them ? — A. There has been a sort of belief of that kind ; that is to say, some of them have an idea that all they are required to make is 80 per cent, of the two and a half gallons. If they make that, it is all right. 134 COLLECTION OF INTERNAL REVENUE IN O. Do jou know bow many storekeepers and gangers there are in that district ? — A. I do not, sir. Q. 1)0 you have an idea what proj^ortion are in employ at one time ? — A. So, sir. Sometimes qnite a number. At tliis time of the year, I think there is not a quarter of them employed. I do not know how many are employed, but in the summer time these little places close down, and start u]> when they get in their crops, and go ahead again. Q. Did you say it had been reported to yon, or your officers, that storekeepers went off and left their distilleries'? — A. Yes, sir. Q. Of course the distiller had it then all his own way, did he not? — A. Well, sir, I think that iu most of the instances they were caught away that everything was locked ui> ; that is, the locks were locked ; but they had no business to leave. ■Q. And frefpiently the distillers would have the key when the store- keepers w( uld leave? — A. I don't know that. Q. You know that was reported to you; of course, I am asking what you are officially informed of — you have no personal knowledge? — A. I don't recollect of such a case in that district just now. Quite a number of men have been removed or dismissed, for leaving their distilleries when they were in operation, but they had the keys, and sometimes^ designated a man to act for them. Q. They had given the key to somel)ody? — A. Designated somebody there in the neighborhood to have the keys; something of that kind I believe. Q. Describe the duties of the storekeeper and general storekeeper? — A. The duties of the storekeepers — these are storekeepers and gangers now — it is his duty to be at the distillery when the distillery commences operations in the morning, and remain there till they get through, and weigh the grain as it comes on the premises, and weigh it as it is thrown into the mashes; to keep a general supervision of the bnsiness and see that all the vessels are closed and tight through which the spirits passes- into the cistern-room. He carries the key of tlie cistern-room, and when they have sufficient spirits to draw off' — they must draw off' not less than once in three days — he draws it oft' in packages, gauges it, takes the i)roof of it, affixes to the package a stamp furnished by the de]»art- ment, called a warehouse stamp, and marks the seiial number on the package and the distiller's name and district, and cancels the stamp and places it in the warehouse, for which he also carries the key. AVhen a distiller wishes to i)ay the taxes on the spirits in the warehouse he makes an a]tplication to the collector for a stamp and sends him the money. W'lien that is done the stamp is forwarded. (). To whom ? — A. To the storekeei>er and ganger — that is. where the distillery is in ojjeration — and he aftixes the stamp to the package, with- draws it, and makes an entry on his books, and he also makes other entries. (). On the amount of grain, t.\:e. ? — A. ( )n t he anu)unt of grain received on the jnemises and in the mashes of the vessels (illed and em])ty; he takes the gl■a^■ity of the beer at noon every day, and enters in his book tliese ]»ae]. \\'lien does tlie geneial storekeejjer come in, ami how? — A. AVhen the distiller snspeiMls opeiations, the storekeejter and ganger turns over his l>ooks and keys to tiie collectoi'. The collector then jtlaces the keys in the (Mistody of the general storekeejx'r, who Inis ai(l staiiii)s to the ])roper ]>acka.i;es, and delivers them from the warehouse to the custody of the distilhM\ Q. Whose duty is it to stamp and (h'liver the liquor when the owner wants to sell it from a warehouse whih; under suspension? — A. Tlie j^eneral storekeeper, who has charge of a number of warehouses where the distilleries aie not in operation. Q. They are usually divided by counti<'S, or if a lar^i^e number of dis- tilleries are in one county they are sub(li\i(led ? — A. That would be the case. I don't know of any county divided in that State. If there were more than one man could do in a county, they would be justilied in dividino- the county and having two men. Q. What notice is required when a distiller is going to suspend ? — A. He has to forward a notice Q. 1 mean how many days notice, or is there any time fixed '? — A. He lias to give sufticient notice to allow the collector to notify the deputy to close it. It is their duty to close the distilleries and open them. Q. Is there any penalty or loss attached to a distiller who closes with- out giving notice ? — A. Without giving notice 1 Q. After giving, notice ? — A. No, sir. Q. Does he incur no penalties for stopping ? — A. Xot in a regular way. If he closes without giving notice they would assess up to the time the notice was given. Q. If he gives notice he can quit without any loss or penalty to him- self f — A. Yes, sir; so far as I know. Q. A man running a small four-bushel still can close without much trouble at any time he wants to ? — A. Yes, sir; with some exceptions — where the distiller is feeding stock. Q. Unless he has something depending on the distillery ? — A. If he has cattle or stock depending on the products of the distillery he cannot suspend without loss. By Senator McDill : Q. Is the tax levied on theroduce 80 per cent, of that capacity. If he falls below that capacity, he is assessed for the difference. Q. If he shuts oft' for a tinie, he wonld be charged 80 per cent, of his capacity till he reported ? — A. Yes, sir ; if he closed without giving no- tice. If he notified the office that he would close on a certain time and does close, that lets him out, provided he has made his 80 per cent, of his cai)acity during the month. By the Chairman: Q. What I am after is this : the owner of a small distillery, who has no interest that would suffer by his closing, has the storekeeper pretty nuich at his mercy, has he not? — A. That is unfortunately so all o\'er the country. It stops the storekeeper's pay by closing the distillery. Q. It is very probable, you say, then, in these reports, that the temp- tation is very great for the storekeeper to divide his pay with the dis- tiller, in order to keep the still running? — A. Yes, there is that much temptation. Q. And the meaning of that is, that the government is paying for the running of these distilleries, if that is so, that the storekeeper does di- vide, indirectly of course? — A. I do not know that the government cares much whether those distilleries run or not. 13(J COLLECTION OF INTERNAL REVENUE IN Q. But if tLe money paid to tbe storekeeper goes to tlie distiller to iiidiiee bim to run, it is indirectly the government ])aying Lim to run. Since you have been acquainted with that district has there or not, been a diminution of blockading", as we call it down there, or illicit distilling? — A Yes, sir, there has been a very great diminution; in fact, in all the States that is the case, since I first knew anything about i*^. There has been a very great imjjrovement all over the country. Q. Do you attribute that improvement to tliis system of allowing small distilleries to run ? — A. In a great measure, I attribute it to that. There are other causes in connection with that. In my judgment, it is attrib- utable, in a great measure, to the starting of these small distilleries, wiiich made the distillers interested in keeping the l)lockaders down. Q. Did 3'ou ever make a calculation, or ever consider the condition of a man running an illicit distillery with all the risks and accidents iniddent to his having to keep it secret, and one running a distillery where the storekeeper paid the distiller half his pay; is not the one much more profitable than the other? — A. Well, sir, I think the illicit distillery would be the more i^rofitable. Q. If he could lun with impunity it would ? — A. Yes, sir. AVell, it does not cost n uch to start one of those distilleries. Q. It costs right smart if he is caught at it? — A. ^Vell, unfortunately it does not either, sir. Q. What is the reason? — A. These people have a great deal of sj'm- pathy, and when we get them into court, it is a very hard matter to con- vict them. Q. But these lawyers do not have much sympathy for them; they charge them pretty heavy fees don't they ? — A. AYell, they get after them pretty lively sometimes. Those little m.n have not got very much, and and I guess they do not get so much out of them. There are a few men engaged in timt business that have got money and made luoney, but, as a rule, an illicit distiller is a very poor miserable man, who drinks up a good deal of the profit; his neighbors also all get around and drink with him, and by the time he gets his old. kettle cut up he has not made a great deal out of it, but he can run and make a little. It depends upon how^ good a hiding place he gets. Q. What do you suppose, outside of the material, is the cost of run- ning one of those little four-bushel stills, where the owner operates it? — A. Labor down there is renmrkably cheap, and wages are cheap. The people are satisfied to work for little money; fifty cents a day for a dis- tillery hand is paid, and considered very good pa}*, in many cases, tor a coloreil man, I believe. (^>. A common nnin ? — A. An ordinary man; fifty cents I have heard of being ]»aid ; in fact, they told mo so. The cost above the grain is not very great. The grain is the i»rincipal cost after getting their api)ara- tus up, and then it all d('])ends ujton the price of the grain ami the price of the whisky. Q. Now, if a storek('e|K'i' re(;eived si a day, and would gi\e half of it to one of these Jitth' distilleries, that $.5 would ran tlu; wliole machine, would it not ? — A. 'J'hat de])(;nds upon the cost of the grain. (^. i mean outside of the grain. — A. O, yes, I thiid< it would. (^. More too ? — A. Ves, sir. The grain now is high down there. Some illicit distillers we broke uj) theie were paying !$1.1M a bushel for (.'orn. <^. IIa\«? you seen theic, in that countiy, much lesistance to the offi- ( <'is.or only an e\ asion of the law? — A. Not since I have been in charge. I kn<»\\ that xcars ago thcic was a great deal of trouble in the district. I was down llincand had some knowledge of the fact. I5ut since I THK SIXTH DISTRICT OF NORTH CAROLINA. lo? have been theie wv liavu liaody was hurt — probably more to scare them. Q. Shot at to scare them ? — A. To notify the men to .yet out. Xo one lias been hurt in the State since I have been there in cliarge. Q. What do you know about the levying of political assessments in that district by the collector and his oHicers? — A. Well, sir, 1 know of it by having' to investigate a matter not pertaining to that, but espe- cially to another matter, in which that instance came up. (j). You made an investigation of the levying- of assessments for office expenses'? — A. Yes, sir. Q. I see in that report you find one man, a storekeeper, that had given something over $100. — A. Y"es, sir. Q. Y^ou say he was a poor man, with thirteen children? — A. That is what he said; I did not see them. Q. In that report you do not give his name. AVillyou now give us his name ? — A. I thought his name was in there. Q. It may have been in the papers you referred to, l)ut it is not, I thiidc, in the report. Did you ascertain how these sums were collected — whether the deputy collector went around with blank checks and re- quired the officers to sign them ? — A. Well, sir, that was the information I got in iuvestigating it — that tliey came there and asked them to sub- scribe something. Q. In your report of April 20, 1881, jou sa}^, " In regard to the two officers who, it was rumoreay for his board. The man said he would pay for himself and the kee]) of his horse exactly what he could get it for at another place around there. The distiller said he was not going to run and wanted some- body else, wluneupon I went to Dr. Mott and gave him the facts, an. There was enough money to answer the purpose contributed, and the others who did not pay were not i)ressed ? — A. I do not think there was any attemi)t to press anybody to pay; they just sent it along at the end of the month, when they got their salaiy. They sent a dollar and a postage-stainj), or four cents. (^. You said there was a balance on hand. How great was the l»al- anc'c une.\])<'n(h'd at that time? — A. I think about a hundred and fifty dollars was there when I counted the cash out. ((^)uoting.) ''Total cash «.n hai d I)ee( mber S, ISSO, sl5l ,-';-V." (). \iH\ said you did not know wljat became of tlie balance ? — A. Xo, >ii : I did not inxcst igate it fiiit her than that the monev was there when I U-\'\. (^. \\';is I lie iii(»iM\ let iinied to the men, or expended in the ordinary May ! — A. I do not know . <). l>id yon find anvlliing there liial looked like dishonesty on the part <»l'l)r. Moll in eoniieclion with this matter.' — A. 1 found nothing there thnt looked ;i nU li i ii'^ like dishoiK sty on t lie part of I )]•. Mot f. The THE SIXTH DISTRICT OF N.JKTH CAROLIXA. 141 most I fouii I was carelessness; and tlic circuilar should not ]ia\'e Ijccn sent out. Q. What was your general conclusion after investigating the whole matter? — A. My conclusion was as stated in the circular; as they had tilings to get, and the people in the office were getting them, I thought the others should help to bear the expense. Then there was careless- ness in the mannerofkeei»iugthe accounts. The accounts were not made out. 1 saw the doctor itrevious to my visit, and showed him the circular, and asked him when I met him in Greensboro, at that time supposing he had not known anything about it. He said yes, and explained it to me, and told me to go there, and that I should find everything all right ; that they kept an account of it, and that I would find everything written up. I went there and I did not find it in very good sha])e. The thing was all in a bunch and the enti'ies were not nnide. 1 had to give them time to make u]> a statement, which they did. After they made me up the statement then I made my report. Q. The government lost nothing by this matter at all; none of this came out of the United States Treasury? — A. No, sir; the government was a little in by it. Q. The government saved money by it? — A. Yes; this was i)aid for what the government ought to have furnished. i}. It is a very large district? — A. Large in territory. Q. Do you think it was an unreasonable thing to be done, to ask those men to contril)ute their share of the ofrtce expenses? — A. It ought not to have been done; but it was hardly fair, I think, for a few officers to have to pay it all. The government ought to have ])aid all this expense. Q. Do you know whether Dr. Mott made an ai)plication and tried to get the government to pay it I — A. I understood he did. Q. But after his failure to get it from the government, and part of the ofiicers failing to pay, do you think it unfair to send out and get from the others a sort of general ])roportion ? — A. It was out of the reg- ular order of things. It was not fair for him to have to pay it. Q. I do not speak of it in that sense, but as a matter of honesty and of ethics and morals. — A. I do not think tnere was anything dishonest. It was ]nirely a matter of business, Q. What did the Commissioner do about it ? — A. He ordered it stopped, I think, immediately. Q. Did he make some allowance to cover these things ? — A. I do not know, sir, whether then or not. I do not know as to that. Q. Do you not know that the messenger had been provided for, and these assessments had been stopped before you made the investigation at all ? — A. I understood that they were not collecting any more. They had a balance and had not asked any further. That was the only cir- cular they sent out. I don't know that they issued an order that they should not do it. The thing dropped, and there was no need of any or- der. I do not know that an order was issued to stop it, but there may have been. (}. You say there was nothing to indicate that the money was col- lected, except for the legitimate purpose for which it was purported to be collected? — A. It a[>peared to me that wav — what the circular called for. Q. You say you saw a few who ])aid campaign assessments; how many did you see who had paid these? — A. I will explain to you how I came to see them if you wish it. Q. Yes. — A. On account of this incidental expense account being carelessly and loosely kept, I suggested to the department to send a cir- 142 COLLECTIOX OF INTERNAL KEVEXUE E\ €ular letter to all those men askiiij^- tlieiii to n'i)ort what they had ])ai(l, so as to compare and see whether the tliiuj;- was right. That was sent into the district, and some of tliese men — storekeepers and gangers — answered the letter, and in place of saying they paid so mnch, or did not pay anything to tliese incidental office expensts, tliey reported that they had paid S104 or 6108, that they contribnred for campaign pur- poses : and it was these people who reported that whom 1 saw. Q. These people made that mistake ? — A. They made that mistake in reporting for incidental expenses that which they paid for something ■else. Q. There were no more than four or five of these ? — A. I do not think there were. Q. You know some other officers in the district who did not pay any- thing for campaign purposes? — A. Some men did not pay anything. Q. Were they turned out of office on account of it ? — A. I never heard of it. Q. Were they put to any trouble, or uuder a cloud, on account of it ? A. 1 never heard anything of that kind. Q. Did 3'ou see anything to indicate that the payment for campaign ])urposes was ever at any time anything other thau voluntary ? — A. No, sir; I never knew of any man. I just got that from those people I saw and visited ; they were pertectly willing to i)ay. Q. You never saw anything to the contrary of that? — A, Xo, sir; I SV^^/t' ollicers, I mean ("nited States officers in a State, as contradistiiiguislied from IJnited States officers engaged liere at the capital. — A. I think in the Stateof North Carolina they are .sent out by tlie Statt; committee. Tiie CiiAiKMAN. l>y wliat party ? 'I'lic W'rr.M-ss. I5y the i;epnl>bcan party. 1 do n »t kniwabjiit the ? — A. 1 s;ip; os • >i>. 1 can- Jioi speak by peisonal knowh-dgc. THE SIXTH DISTRICT OF NORTH CAROLINA. 143 (^. You si)<)k(' of^Ir. Teiii])li'tort says, went in in 1874? — A. 1874 — in ten years. i). ^Vas it in the year 1871 or 1872 1' — A. I just give his statement there; 1 think 1874.' The Chairman. He was ai)])ointed storekee]>er and ganger in 1874, or ^vent ujjon duty at tliat time. Tlie Witness. That is his statement to me. 1 did not h)ok it up to see if correct or not. ]\Jr. l*ooL. Tliat would be six years. The Chairman. The report is dated 1881. By Mr. Pool : Q. What was he receiving- a year ! — A. Up to that time, if he was ou duty all the time, he had been receiving about -f 100 a month. It de- l^ends upon the time he was assigned to duty. Q. It may be roughly put at $1,000 a year; he was storekeeper and ganger at the Coopers's establishment ? — A. When I saw him ? Q. Y"es. — A. At Mr. Cooper's to the best of my recollection. Q. Do you not know he had been at that establisiiment all the time lie was em]>loyed ? — A. I do not know that ; he may have been. Q. These men did not suspend their distilleries at all, did they; they ran all the time ? — A. I cannot say as to that. Q. Y'ou don't know as to that? — A. I don't know it. (). Now, you can safely estimate that Templeton would have received, jipproximately, a thousand dollars a year? — A. I could not say, sir. It depends upon the time he was assigned to duty. If he were at a distil- lery that ran continuously — he would receive over that, .$1,200 a year. Q. Those Coopers were men of means, substantial men, who make it a matter of business. Did you ever hear of them having suspended at any time? — A. I never heard much about them. I know if they were substantial men they would be apt to run probably more than others in the district. The distilleiy was running when I went there. I was never there but once. Q. Now, upon the supposition that he was engaged all the time, he would have received .$1,245 a year. — A. In that neighborhood. (}. That for seven years would have been how much ? — A. Just seven times as much. Q. Between $8,000 and $9,000 1— A. Y'es, sir. Q' And during the time he had paid for political purposes $400. In speaking of storekeepers dividing with distillers, you said that it was in the pjwer of a distiller to stop wheiu^ver he pleased? — A. Certainly. Q. And that, unfortunately, the pay of the storekeeper was measur- ably' in his power? — A. Y>s, sir; it is an unfortunate thing in the law. Q. That is a defect of the law? — A. Y"es, sir. Q. Xot a defect in the administration of the collector'? — A. Xo, sir; not at all. This is so all over the country. If a distiller starts a distil- lery and don't like a storekeeper, gets mad at him, he justs shuts down and cuts off his i)ay. Q. It a person wanted to remedy that, they would have to change the law to do it? — A. No other way. Q. Then, if t-hat defect is to be reu.edieil, it is the duty of Congress to do it ? — A. Y^es, sir ; certainly. 144 COLLECTION OF INTEENAL REVENUE IX Q. Have you any plan to suggest by wliicli Congress could do it practically ?— A. They cannot regulate the running of a inan'.s distillery. Q. to remedy that detect in the law 1' — A. Just pay them a salary. Q/AVhether they work or not ? — A. Yes, sir; that would be the only way. Q. But, unfortunately, that is not the law. — A. That is not the law ; no, sir. Q. Did you e\cr find out an instance in your investigation there where any storekeejier divided with the distiller ?— A. I do not re- member of an instance where we proved that they did. They have a very cute way of fixing it uj), some of them, so that we never got at it. Q. You never got at the i>oint and i)roved it on them f — A. We talked that all over, T>i\ JNIott and I, when 1 was down there. AVe agreed that the first case we could get to stick we would prosecute. Q. Did Dr. Mott exert himself diligently to try and find out some one who had done it ? — A. Yes, sir; he did all J could ask of him. I have no coiuplaint to make about that. If 1 told him what my suspi- cions were, he acted upon them. Q. And you and he combined tried to find such an instance and could not ? — A. Yes, sir. AVe agreed to use the law to prosecute them. I made up my mind and saw Dr. Alott about it, and he said he would do it ; that he had been trying to find out such a case. Q. It was the policy of the government to induce men to put up stills in order to break down illicit distilling f — A. That was the policy that was adoi)ted for that purpose. Q. And efforts Avere made to do it ? — A. Yes, sir ; they were encour- aged in it. Q. And you found men saying that they had suspicions that the gov- ernment was trying to do that in order to secure some hitch upon them ? — A. Yes. I could exjtlain that better. Q. AYe would like to hear it explained. — A. Previous to the time this l>lan was adoi)ted there were a great nuiuy men that had engaged in the business for years of illicit distilling and defrauding the government, and they were charged with all manner of offenses, and were afraid that the officers Avere trying to ]mt up a job on them in order to get them in, and then the marshal could grab them and take them into court. (}. Then they had a susjucion of tlie good faith of the government? — A. Yes, sir. Q. They thought the government was trying to play a trick upon themf — A. To ])unish them. (}. ^Vas not that the reason w]i\ they weie unwilling to have store- keepers around them that they did not know, but wanted men of integ- rity, in whom they iiad coulidence? — A. 1 cannot say what their reasons were, but tha:; was the way 1 recollect it; the way it was ex])lained to me, and I saw a great deal in it. (^>. They did not want a man selected as a storekeeper over them who wouhl be a sort of spy ' — A. Tliey would not start with an\ man of that kind. (}. Tiie\' want<'d some man of tlieir ac(inaintance in whom they had eonli(h'nee to do what was fair? — A. That was the way I understood it. (}. And ir tliey did not get su(;h a man they would not open their dis- tilh'ry at all .' — A. Yes, sir; I unch'i-stood that was the case. i). That was tiie extent to which they had a voice in the selection of .>-torekeep«'is / — A. Yes, sir. (}. Do \i)\\ l\no\\ of any gre'ater exlent in which thcv had a voice in THE SIXTH DISTRICT OF NORTH CAROLINA. 145 the selection of a storekeeper, iu any otber way? — A. I caimot say that I do. I do not recollect. Q. They were yielded to, to some extent, in that respect, by tlie col- lector; that is, he tried to satisfy them by giving them such storekeepers as they had confidence in ? — A. I do not know as I can recall a case. I believe it was done in the State, and probably in that district. Q. You may not have thought that this was a very ])roper thing in the collector to do, in order to carry out the wishes of the government to get these men to startup distilleries'? — A. I would say this, in some in- stances the collector, to get them to start, has yielded to them iu that particular. It was not done in every instance. Q. You don't think it was done so as to get a dishonest storekeeper,* and thus eimble the distilleries to be dishonest ? — A. I did not under- staiul it that way. The Chairman. Plyler's point was that, was it not ? — A. That fellow tried it; yes, sir. He wanted to get the divide. By Mr. Pool : Q. Were most of these distillers ignorant men ? — A. They were, sir. Q. Not acquainted with forms of business very well ? — A. No, sir ; very few of them can read or write. Q. Was it not a great advantage to have a man for storekeeper pro- ficient in that regard, so as to show them how to keej) their books ? — A. Yes, sir; certainly it was, because very few of them can read or write. Q. Was it not very natural that the distiller would prefer a store- keeper who had a business ca])acity to help him along in that way ? — A. Natural enough. Q. Some men were more accommodating than others in helping a person along with their business. Would not a distiller rather have an accom- modating storekeei)er who would do alittle writing for him, and show liim how to put things in good shape? — A. Yes, sir. A great many store- keepers and gangers iu that State do the writing for the distillers, while it is against the regulations. Q. Would not the ganger be of considerable service to the distiller in watching over his business and his hands, and keeping an eye generally over matters while lie was off on other business — on his plantation, for instance? — A. Yes, sir. Q. It would be very natural for a distiller to want a man who would do this ? — A. It is very natural for these people to want competent men, that understand making out reports, and all that kind of thing, because if they do not have them they are very apt to come in for assessments and to get into trouble. Q. Isn't that one of the important services that can be rendered by the ganger in the business of the distiller, to look after his hands, and allow him to attend to his general business while he was absent, and let him know when he came back if there was anything wrong — acting as a sort of overseer f — A. They do thatj but there is nothing in the law that requires it. Q. I don't speak of that as the storekeeper's duty, but as a friendly act ? — A. Oh, yes ; it is a help to these people to have men of that kind to look after their interests. Q. Was not that a kind of an expression on the part of the distiller, of a preference of one man over another ? — A. It was, I believe, in a great measure. Q. An expression of such a preference would not necessarily imply S. Mis. 116 10 146 COLLECTION OF INTERNAL REVENUE IN tbat he wauted a dishonest man to help him to steal '. — A. Xo, sir; not necessarily. Q. And it would be of great benefit to have around such a man to look after their interest, to look after their writinj^- and business? — A.. Yes, sir. Q. And to see that things were' faithfully done generally around ? — A. Yes, sir. Q. You spoke of the condition of the locks and other things around the distilleries that you examined, and the answers upon this form, of twenty questions or more ? — A. Yes, sir. Q. And you fouiul sometimes that the painting was not exactly done right, and other little defects ? — A. That is, irregularities in the distil- leries. Q. Did you find any more of these in that district than elsewhere ? — A. I don't think I did ; they were about the same all over the State. Q. This district in that respect was up to the general average"? — A. Yes, sir; and in some sections of it, especially one division that I had examined, I think they were in better condition than the general run of distilleries in the State. Q. That involved a sort of general investigation into the general management of the collector of his district"? — A. Yes, sir; I judge of the efficiency of an officer by the condition of their divisions, the distil- leries, and so on. Q. Did you find that Dr. Mott had faithfully and diligently discharged his duty — seemed to be a diligent and faithful officer in these respects ! — A. Yes', sir; I never had any complaint to make of him. Whenever I called his attention to anything I have had it corrected. Q. Did it appear to you that he had manifested ordiimry vigilance over the district f — A. Yes, sir; as much as the other collectors. Q. And you thiuk that he had his district up to the general average, and in some places above the average ? — A. I am speaking now of the southern district. That is a peculiar district, you understand ; there is not another district like it in the country. Q. Xow, is not this a very large district? — A. Yes, sir. Q. One of the most difficult of all to manage"? — A. I don't know of any other district as difficult to manage as that sixth district is. Q. And, notwithstanding. Dr. Mott did have it up to the full average, and in one division above the average ? — A. He may have had more than that above the average; that is, in distilleries complying with the law. (I. You tell me it is a dilficult district to manage. Will you please ex- plain how that is in the several respects, and why that is in detail, and what were the troubles in the district? — A, In the first i)lace, itisa large territory ; it is inai'cessible in a great many portions of it. In some (;ases a man might have to go over a huiulred to a hundred and fifty inih^s to get at a little distillery away over in the mountains in some of these far western counties. And then there have been these small distilleries started up which are nu)re trouble and bother than a grain distillery that is paying a thousand dollars of taxes a day and everything running smooth and nice. The ])eople in these distilleries are educated in tlii' business by ii lifetime spent therein, and they go along smoothly. These httle fellows are ignorant i»eoi»le. and they do not s to 1877. At that time they had soldiers sta- tioned down there, and tliey took some soldiers, a large force of mounted men, to go into portions of that district to destroy and break up these illicit stills; the resistance was so great; but uow you can travel all through those same districts, these worst districts; you can go any- where without fear of being molested by the people. Q. AVere there men in the district denouncing the revenue law aiul the government on account of it?— A. Well, there were several causes that combined to increase the feeling against the enforcement of the revenue law. The i)eople there at that time did not have a very great respect for the government or its laws. JNIany of them, especially this class of people that were running these illicit distilleries, it seemed to them the first duty they owed to the government was to beat it out of this revenue tax; and 1 have known witnesses to testify in getting on the stand in cases 1 had there myself — one case 1 remember, where three or four witnesses connected with the case, county offtcers, sheriffs, and deputy sheriffs, went upon the stand to prove the character of a man ; and the district attorney, after they had testified to his being a good man, a man of fair dealing between man and man, asked these witnesses what they would think of a man in their section that would blockade a little whisky and tobacco. They all testified that it would be to his credit to do such a thing. That is ab-out the sentiment of the people in some localities. While a man wouhl be considered a fair and square man as between man and man, when it comes to doing a little blockad- ing it would not hurt him in the eyes of his community. That was the the feeling in 1877. (}. Was that feeling encouraged by political movements down there, and s])eeches on the stump, &c.? — A. I can only testify as to that from what I have heard. Q. State what you have heard — common runn)r. — A. 1 think that and other things had something to do with encouraging the feeling against the government. The people did not like the laws. (^. Was it common to denounce the revenue officers because they were revenue officers ? — A. Yes, it was common to denounce revenue offi- cers at that time, and considered fair, I think, to run them off if they ■could. (»>. Were they reviled with epithets, insulted, &c. ? — A. So far as I am ])ersonally concerned, 1 have no complaint to nuike of that to me direct. I got ah)ng very nicely, but I have heard of officers being cursed and men sliot at and shot. (^. You called witnesses for the State in these revenue causes; how wer«; they treated by the court and prosecutors? — A. For the United .States? (J>. Ves. — A. Many of them were treated a little roughly, and, in my jndgmcnt, they would be denounced. i}. Was thcVe an cffoit to browbeat them'?— A. Yes, a little. They di. l)ins against the revenue officers Avho had done such a thing. One of the State judges advised the in- dictment of those officers, and the whole thing combined just at that time to start up a bitter feeling against the revenue officers. Q. You do not know of any illegal arrests occurring in the sixth dis- trict ? — A. Xo, sir. What I referred to occurred in the fifth district. Q. How did Dr. Mott manage those difficulties, with discretion and moderation ? — A. So far as I know, he did very well. I was not in his district at that time. ]My head({uarters were at Greensborough, N. C, as now. Q. At any rate, a very great improvement has been effected there, from some cause ? — A. Y'es, sir, a very great improvement all over the State. There are less frauds in the State to-day than ever before. The honest manufacturers have a better business than ever before, supply- ing the markets with tobacco that were j)reviously supplied with illicit tobacco, and the revenue is greatly increased. Q. The law and the execution of the law stand in better odor with the ])eo}>le "/ — A. Yes, sir ; the feeling is very much better. I can go anywhere in that State without fear of being molested by anybody. I do not know of any ])ortion of the State where I would be afraid to drive now. Q. Do you think the collectors in the State and their officers have managed the matter with discretion and wisdom, and Dr. Mott in par- ticular ? — A. Yes, sir; he deserves as much credit as the rest. Prob- ably he has had the worst district. Q. Y^ou have heard rumors of all sorts of frauds in circulation about the revenue officers? — A. Yes, sir; you can hear almost any kind of rumor down there. Q. Have they become less recently — these derogatory rumors ? — A. Yes, sir. There is not that feeling against the department. A great deal of the rumors are put out by people to serve some euds, but whAi you come to sift them down you do not get anything. It is a waste of time to run after rumors. Q. In that investigation down there have you ever been able to find any official misconduct on the part of Dr. Mott ? — A. I do not know. I do not remember of an iusiance where. I have reported, in his district the same as in all the others, all the facts I got to the department, and I do not remember of having come across any. By the Chairman : Q. Y^ou said, in response to Mr. Pool, that you did not think, though the officers were deficient in many respects, that Dr. Mott could have gotten better officers in that country. Do you mean to say there were not educated young men enough in that country to have filled those positions ? — A. No, sir; I don't mean to say that. I speak of my knowledge of them. If they left it to me I was not able to have done any better than he. Q. Suppose your choice were not confined to one political party, do you think you could ha\'e found as manj' intelligent officers there as in any other Southern State? — A. Maybe, sir; I don't know as to that. 150 COLLECTIOX OF INTERNAL REVENI'E IN I understood tliat of these niou a good many were drawn from both i>art ties. I never asked them their jxihtics. When I go to a distilJer - never inquire about the man's poHtics; but I always understood thai some few years ago, under tlie Hayes administration, a great many Dem- ocrats were ajipointed in that district, but I did not know it of my own knowledge. Q. Did you know that the appointments were generally made for a political i)urpose; that a man was appointed because he was a Republi- can, or they would make him one? — A. I don't know that it was done for that altogether; there may have been some of that; I cannot say. As I stated before, I never had charge of the district until the loth of October last. Q. Do you not know, in fact, that they were all politicians and did party work? — A. No, sir; I did not know that. Q. Do you not know that the revenue department is the head, front, and working force of the Eepublican party in North Carolina? — A. I know that a great many of the officers are Eepublicans. Q. Do you not know that the expense of running the party machinery is borne by the revenue officers? — A. No, sir; I don't know that. Q. Do you not know that most of it is? — A. No, sir; I don't know what the expense is. I don't know anything about it. I am there a stranger. I came from New Jersey, and do not meddle with their affairs. Q. You said a great deal of this lawlessness was encouraged by poli- ticians? — A. I said it was a combination of causes, and that was one of them. Q. In response to that, I ask you if it would not l)e legitimate for the Democratic party to condemn the revenue de])artment because the revenue department was a part of the lvei)ublicaii party machine in that State? — A. You ask me if I thought it fair to do that? Q. If there is anything unfair or out of the way to do that? — A. I don't think it was fair to do that, because it encouraged a great many poor people, who had a great deal of respect for the siieakers, and who could not read, and who got their information from the stump — it ad- A'ised them to do tilings which caused them to get into trouble. I do not think it was right to encourage violation of the law. ^Q. You thiidc it was fair for the iicvenue Department to organize and have contributions and run the political machine, and the Democratic party managers and ne\vspai>ers must not say anything against it be- cause it would ('iu'Some of them were there and some were not there. Q. Did not these young men selected become Eepublicans ' — A. No, sir; my recollection is they did not. Q. Did you not know that they all subscribed to these political con- tributions ? — A. 1 did not know that they did. My impression is that they did not. Q. AVho was chairman of the llepublican Committee in that State ? — A. Just now ? Q. Yes. — A. Dr. Mott is chairman of the committee. Q. Who was chairman l)efore him ? — A. T. N. Cooper. Q. And he is collector now ? — A. Yes, sir. Q. Does that not look very much as if the llevenue Department there is head of the Jkepublican party? — A. I cannot say that. Q. When the collectors are also the chairmen of the executive com- mittee, and so on, it looks very much like as if they were running the machine altogether ? — A. 1 cannot say as to that. 1 suppose he had a right to be chairman. Q. Xo doubt about that. You also stated to. i\lr. Pool (or rather iNIr. Pool suggested it in his question which was leading) that these distil- lers displayed anxiety to have storekeepers in whose integrity they had contidence; do you mean to say that that was the only reason they de- sired who should be storekeepers ? — A. Xo, sir. Q. Were the3' afraid that the government would send them store- keepers who would be rascals ? — A. No, sir ; I did not say that ; but that it was to their advantage — that class of men being illiterate — to have men who could read and write, and keep their accounts straight and clear of assessments. (\). Do you not know that in some instances it was reported to you that the storekeepers did not understand gauging, and that the distillers had to gauge for them ? — A. I did not know that the distillers gauged for them ; but some storekeepers were reported who did not understand gauging. Q. We find here in the rej^ort of Mr. Tracie that the distillers fre- quently gauged for the storekeepers? — A. I don't know that. I have my suspicion how some of them arrived at the capacity of a barrel ; but that is only suspicion. Q. I believe I asked you that question before. Mr. Tracie reports that the report of the distillers almost invariably is two gallons to the bushel, and he infers that the balance was abstracted ; now I want to ask what is generally the product of a Vmshel of corn in these distiller- iesd own there ? — A. Well, sir, 1 don't know that 1 can tell you. I have my suspicions about it, but it is just suspicion ; only I thought the ma- jority [)roduced more than that ; but a great many of them did not know how, but others did, who understand their business vervwell, and get awav with it. 152 COLLECTION OF INTERNAL REVENUE IN Q. Au ordinary distiller could make three gallons of whisky out of a bushel f — A. I cannot say that. My judgment is, they ought to pro- duce two and a half gallons to the bushel, and if they cannot do that tbey ought to quit the business. Q. Is that the minimum they ought to produce ? — A. I think that with their apparatus they ought not be required to do more than that. Q. If only two gallons are returned then the balance is abstracted"? — A. If they make it, of course. Q. You say you have heard the revenue officers abused in court very much ? — A. I have heard of that. Q. Did you ever hear of witnesses being abused in court in any North- ern State ? — A. I have, sir. Q. It is quite a trick of the trade with lawyers ? — A. Yes, sir 5 I can not speak of it myself in the courts, but I have heard of that some time ago charged; but it is better now than it was then. Q. Can not you say, in justice to our people, that if all the officers were to conduct themselves cleverly towards them, they would receive the same treatment that you do? — A. I am only speaking in regard to myself. I have always been treated there cleverly by the people and by the counsel, but I have heard of others being abused, and in my opinion it was unnecessary. Q. And that was in the Federal court, where the government could have protected their own witness, however the lawyer was exceeding his license? — A. Yes, sir; that is true. Q. You saj you have heard officers reviled and contemptuously spoken of? — A. Yes, sir; some time ago; when I first went down, in 1876 or 1877. Q. Have you had a knowledge of the world at large ? Have you not heard, from the times of our Savior, that the tax-gatherer was an un- jjopular man? — A. Yes, sir; I have heard that. (}. Xow, with reference to the violation of the law by these small dis- tilleries, I will ask you another question : If one of these great distillers out Avest undertakes to get up a fraud, can they not cheat the govern- ment out of more money and more taxes in a week than the whole of the North Carolina mountain countrj^ distilleries in a year ? — A. Yes, sir; if one of them was to go in to steal all they made. Q. This great Saint Louis fraud, for instance, if it amounted to as much as it is alleged to be — all the distilleries in North Carolina, would they amount to as much as it was ? — A. The whole thing? Q. Yes. — A. No, sir; they have not got the capacity. These distill- eri<'s down there do not average over four bushels of grain, and if they stole it all, that would not l)e more than 8 or !) gallons a day — about a& much as would runout of the still of a westein (listillery in two seconds. (}. You say there has been a general improvement in the State and in the feeling of the ])eoi)h' towards the execution of the law? — A. Yes, sir: when I wenf down there about a year ago, I went at the suggestion of or ]ietition of meicliants there in that State and the South to the Commissioner of Internal Ifevenue to send somelxxly down there; their busin<'ss was being THE SIXTH DISTRICT OF NORTH CAROLINA. 153 around to tlieir merchants making;' a report, and seeing- that they com- plied with the hiw, and instincting them with regard to the law. Those reports came to me and I put them in a book. AVe knew each largo mannfactnrer, and as to where each box of tobacco went and how much was in it on a certain day. If a merchant lets that box go and it turns np in another State, then Ave go to the merchant and tind ont about it. It resulted in breaking np the market for this illicit tobacco. It required the deputies of the division to go and see everybody in their division. That broke up the market for illicit tobacco. The dealers went to their customers, but they said, "No; we don't want to deal with you any more — we have got euough." The result was that it closed the block- ade factories, so that to-day, though there are a hundred and fifty less factories in operation, we receive more taxes from North Carolina — a hundred thousand dollars more — than we ever received before. And the honest nmnufacturer got that trade which these men went into and had for what they could steal. I am now speaking of the State, and not districts. Q. There is not a great deal of that in the sixth district ? — A. Con- siderable there. Q. I thought the most of it was in the fourth. — A. The fifth is the largest, the sixth is the next, and the next is the fourth. In tlio fourth there are very large smoking-tobacco factories. We go around to these men now, and it has encouraged their business so much that they treat us very nicely. Q. In relation to the whisky frauds brought to light in the sixth dis- trict, I will ask you, have they not been done by revenue officers in col- lusion in some way with the frauds for which these distilleries were seized; if the storekeepers connected with the revenue department have not been generally involved in it '. — A. lu some cases there was sufficient ground for removing the ofdcers, and they were removed. By Mr. Pool : Q. Mr. Cooper was chairman of the Republican executive committee preceding Dr. Mott ? — A. I so understood it. Q. Was he in the revenue service then ? — A. He was not. Q. He was not a revenue officer Avheu he was at the head of the com- mittee ? — A. I think not. Q. Do you know of any revenue officers who were at the head of this committee except at this time? — A. Not of my own knowledge. Q. Has not Dr. Mott resigned the office 1 — A. Yes, sir. Q. Is there not now a revenue officer at the head of the executive committee ? — A. No, sir. Q. Do you know of any one ever having been at the head of the exe- cutive committee except Dr. Mott before he went out? — A. I am not sure about that, it can be easily ascertained ; it is a little out of my time. Q. In speaking of abusing witnesses, and of cause, it is a general thing that witnesses are often abused in courts — what I mean to say is, Avere not the revenue officers abused Avorse than the witnesses in other cases ordinarily are? — A. I cannot say as to that, because I only know as to the United States courts. I never have heard of their being- abused in these courts in other cases. Q. Is Dr. Mott a popular man in that district and in the State ? — A. I think he is, sir. Q. Is he a man of much more than ordinary pojuilarity ? — A. Oh, 154 COLLECTiOX OF INTERNAL REVENUE IN jes; be seems to l)e the bead of the Iveiuiblican element tbere, and a man tbat is well tboufibt of. Q. Tben J)r, Mott is an exception to tbe old liible rule — tbat tbe tax gatherer is always an unpopular man ? — A. Yes, sir; 1 su])pose lie would be, but be does not stand exactly in the light of those who have to go around among tbe people. He was tbe bead of it. If he had gone skipping- around among- them, the^' would have made it as warm for him as for us. The following witness was introduced and examined for Dr. J. J. Mott, ex-collector of the sixth internal revenue district of Xorth Caro- lina. W. M. Walker sworn and examined. By Mr. Pool : Question. Where do you reside? — Answer. Statesville, North Caro- lina. Q. How old are you ? — A. Thirty-one. Q. What business are you engaged in now ? — A. I am in the revenue service. Q. How long- have you been in tbe revenue service ? — A. For ten years off and on, not steadih* employed, and out of it entirely for two years at one time. Q. 1 want to ask your opinion in tbe tirst place to a time embracing nine months, commencing" tbe 30th of September, '72, and ending the 30th of June, '73, and have you lix those dates in your mind. Mr. Kestler, a witness ]>utupon tbe stand, testifled in regard to some vouch- ers that were put in his own name, embracing tbe time I have named to you, and those vouchers amounted to 8900, at the rate of 8100 a month during that time. ]\[r. Clarke, who sent those vouchers in, .stated in his evidence tbat be sent them forward by mistake, specifying tbat Kestler was a deputy collector during tbe Avbole of that time. I want you to examine the paper here and the statement of amount of allowance that w as made by tbe department to Dr. Mott during tbat time for deputy collectors. (Paper handed to witness.) What allow- ance was made for deputy collectors for the year commencing June 30tb, '72? — A. (Examining.) This is for three deputies at $1,200 each — 83.00(>. (^. Tiicn it ai>])ears tbat Dr. Mott was allowed by the dei)artment from June 30, 1872, for tbe balance of the liscal year running to June 30, 1873, for three deputies at a $100 dollars a nu>iith each ? — A. Yes, sir. (). Which amounted to $3,000. 1 will ask, if there bad been no change in tbat allowance it would have run for the whole of the year to .lune 3(1, ]S73 ; three deputies at 810(> dollars a month each? — A. Yes, sir. Mr. JV)OL. ]\Ir. Chairman, I want to put in evidence this letter of the Commissionei's transmitting tbe ])aper called to the attention of the witn(!ss. The Icitcr slates what it contains. (Marked Exhibit 25.) THKASriiY Dl'.rAlMMKNT, Okfice oi' L\ri:i!N.\i, Ukvicnue, ]yash\uii. Jioie 27, 1882. II. .11. /. r.. \ AN. K. I . S. Siliillnr: •Sil:: I li;i \r I he liomii Ici ;ii|^ now liili;r ncri |it (if \ (Mir (■(iiinniniicat ion ol' t lie --'(itli ilislMiit , :inil ill ((Piiiiiliiini-i' t Ihtcw it li I ciiclnsr fur t lie use of \ our coiiiiiii) ( cc copiois of THE SIXTH DISTRICT OF NORTH CAROLINA. 155 .s))eri;il oi'dcrs for allowances to J. J. Mott, cnlk-ctor sixth district of Noith Caioliiia, uiailc duriii.i;- the liscal year.s beginning' Jnly I, lfi72, and July 1, 187:5. It is i)ropei' to add that said aliowaiiuc^sfoiini'd the basis of the settlcnu-nt with Col- lector Mott for salary and office expenses for said two years. Very respectfnllv, H. C. ROOERS, Act'uKj Coiitmissioiier. And then to put in evidence this paper. I hand it to the witness. It is the copy which accompanied the letter, marked Exhibit 20, Treasury Department, Office of Internal Eevenie, Washimjton, Juntlth, 187)}. Sir: A recommendation is hereby made that the special allowance granted by yon to the collector of the (ith district of North Carolina, nnder date of Angnst IGth, 1872, for the liscal year ending Jnne 30th, 1«7:5, be cnt otf from and after May ", 000 1 clerk, at $1,500 per anuum 1,.500 Rent, at |1.30 per annum 150 1 special deputy at Charlotte for the purpose of examining tobacco, spirits, &.C., which pass through that city per railroad, at .^IjSOU per annum 1,.500 Collector's salary, !5i3,00O per annum 3, 000 Total 12, 15(1 This reconuneudation is rendered necessary by reason of the additional expenses de- volving upon the collector iu carrying out the provisions of the act of December 24, 1872. Very respectfully, J. W. DOUGLASS, Commissioner. Hon. Wm a. Richardson, Secretary of the Treasury. Treasury Department. First Comptroller's Office, June 20, 1873. Respectfnlly returned to the Hon. Seci'etary of the Treasury. I concur iu the with- in recommendation. WM. HEMPHILL JONES, Acting Comptroller. Treasury Department, J»H«23,''73. As herein recommended I grant to the collector of internal revenue of the 6th col- lection district of North Carolina a special allowance at the rate of )i;l2,150 per annum, from May 20 to June 30, 1873, iu lieu of salary, commissions, and previous allowance for said period ; provided, that the personal compensation of the collector shall not exceed the rate of |!3,000per annum, and that projter youchersfor office expenses shall be furnished. FREDERICK A. SAWYER, Acting Secretary of the Treasury. Treasury Department, Office of Internal Revenue, If'ashington, August 7th, 1872. Sir: I have the honor to recommend that for the fiscal year euding June 30th, 1873, there be allowed to the collector of the 6th district of North Carolina, in lieu of the regular salary and commissions prescribed by law, the sum of eighty-three hundred dollars (iS;8,300), to be paid in eijnal monthly installments, and to be applied as fol- lows: Personal salai-y to the collector, per annum §3. 000 3 deputies ® $1,200 each 3.600 1 clerk 1,500 Rent 150 Fuel and lights 50 $8 300 156 COLLECTION OF INTERNAL REVENUE IN Aud that tlie expense attending the adniinistiation of the ottice shall be sustained by proper vouchers. ■j^'E8tiniateroper vouchers. ' Estimated collections, §252,500. Very ri'spectfullv, J. W. DOUGLASS, Commissioner. Hon. Wm. a. Richardson, Secretary of the Treasury. Treasury Department, First Comptroller's Office, August 6, 1873. Appruvcd. R. W. TAYLER, Conq)trol1er. Treasury Department, August 8, 1873. I in icliy graut llic :ill()wancc recoi 'uded herciu by the Commissioner of Internal Rcvciiuf and tlic I'irst < 'ouiiitridier of i he Treasury. WM. A. RICHARDSON, Secretarij. (,). Oil tho LMltli of :M;iy, 1S7."., \v;ls tlicrc aclinii.u'O iiiado by tlio ing out. doing uj) in tlui mountains, we would hire a negro boy and send him on before us. lie could then buy some chickens. Hour, and bacon. This was when away from town; in the towns we could buy jirovisions; but we just took a supply with us from the towns. Goiug off iu the mountains, we could not buy anywhere up there, but this negro boj' could, by i)retending tirst one thing and then another. Q. They would not sell to the revenue offlcers '? — A. Xo, sir; not at any price; but we managed it in that way for sometime. We were fired on occasionally, and two or three of us shot, and a horse or two killed for us. Q. And generally there was a very bad state of feeling in the dis- trict ? — A. At that time there was, sir. Q. The revenue officers were denounced and reviled ? — A, Oh, yes,. sir ; we were put down for everytliing that could be thought bad ; as a "red-legged grasshopper" was the governor's pet name, and the only pet name that we got. That we called our pet name. Q. Were you denounced there on the stump by political speakers? — A. Yes, sir; called " white-livered scoundrels," " whisky-smellers," and "thieves"; "that while our horses were drinking in thewbrauch w^e could smell a distillery off a mile or two." Q. That was said on the stump? — A. Yes, sir. Q. By the Democratic speakers ? — A. Yes, sir. Q. It was a common thing for that to be indulged in on the stum})? — A. Yes, sir. In the campaign of '70; they did not have much more to talk about; the Ku-Klux had fallen out. Q. Did that have a tendency to excite the people against you ? — A.. Yes, sir. Q. And to embarrass you in the discharge of your duties ? — A. It made them insult us on all occasions ; whenever they met us they thre\v u]) something to us that they had heard some of the speakers say that they thought smart. Q. Do you know the number of illicit distilleries seized by Dr. Mott iu that district since '70 ? — A. No, sir ; I do not. Since I have been in the service, should say it was something over five or six hundred ; I have cut up myself in one raid twenty-seven stills in a day ; thirty-odd were cut up in Yadkin County one day ; I was not on that raid, but oft" in another part of the district ; but so it was ^stated to me. Q. Was it safe in those times for revenue officers, unattended and un- armed, to go over that district ? — A. It would be owing to what business he went on and how he went. There would be a good deal of difference. I could at thai time go through any part of the dangerous counties up there collecting the deficiencies; that is, if you would go to a uum's house and say, " I*ay me " ; if he said " No," just ride on. A man could enter at one end of a num's plantation, and if he did not see him till he got up to him, he would hardly shoot him, and let him also get out; but let one enter there to cut up a distillery, and it would be rather a dan- gerous place for hiin. 160 COLLECTIOX OF INTERNAL REVENUE IN Q. Did they promptly pay these assessments ? — A. No, sir. I did not collect any in the mountain districts ; I never had a division there ; others were assigned there; I never had much trouble; always been down out of the mountains; have heard of officers saying they would ride up and ask if they were going to pay them ; but that they would have to wait until you could catch them soujewhere else, when others were around, and tell them they had to i)ay or levy on a horse. Q. It was not safe to undertake to force them to pay ? — A. IS^ot around their home places. I am only si)eakiug of some places ; 1 mean by that that there was in Catawba County a deputy collector who went to a citi- zen there to collect the deficiency. He had l)een sent there three or four times, and could not get it. He went over to the stable to take one of his mules ; he took out the mule. The man first got his gun down and threatened to shoot him. He had come to Statesville and got a couple of young men to act with him. The man had a half-witted fellow, and he told him to get his axe and cut that fellow up. The man started, and tlie deputy shot him. This was within twenty-five miles of the col- lector's office. Q. Was there a disposition on the part of the people to protect and shield the offenders ? — A. There was at that time ; yes, sir. We never got any information from any one until since the amnesty. Xow the better i»art of the citizens will give information of some things, and that has helped us so much to break up this illicit distilling. Q. Do you know al)Out witnesses being abused and Itrowbeaten in court when brought up in revenue cases? — A. Yes, sir; heard some of them abused right smartly. I heard a speech made in a court-house in Statesville not long ago by a gentleman there, a lawyer, who knew the man he wa'fe abusing never touched a drop of liquor in his life, in which he called him a drunken revenue officer, and it was pretty hard. Q. Do you think the political turn this thing took aud the denuncia- tions that followed it embarrassed Dr. Mott and his officers in the exe- cution of their duty to the government ? — A. Some of them it did. Q. Did it eucourage men in the violation of law? — A. 1 think so, sir. Q. Has there been any improvement in the district in recent years'? — A. Oh, yes, sir. Q. State the extent of the iui]novement — how much? — A. I think there is very little blockading going on in the district now. It is scat- tered from there. There is a little illicit whisky-makiug and also to- bacco, 1 sup]>ose. Q. Is there a better feeling among the people? — A. Yes, sir. The ])eople that a few years ago would not give you anything to eat now are ])erfectly willing to keej) us all night aud feed our stock and us the best they can. Q. Is there as much of the denunciation by politicians now as there used to Ix', ? — A. I don't know about that; they are played out. I don't know how it will be in tlu^ next canii)aign. (). Do you hud less deuum-iatiou amoug the masses of the ])eople gen- erally at reveuue ollicers ; less now thau it used to be? — A. Oh, yes, sir. \V<' lire treated now sometliiug like wliite folks, mostly, wherever we go. (^. 1 want to refer toihave small distilleries to large ones! — Yes, sir; that is one of the reasous- I know of other reasons. Q. State them. — A. At tlie end of the month every distiller has tt* give a warehouse bond, a bond for double the taxes on the amount of spirits he made the month before. With those men down there it is a little ditticult to give a large bond. Men running 12 or 15 bushels^ they require a justified bond, and it is very hard to give it;, w.herea.s if he divides up his distilleries he can get two of his neighbors- ouioue^ bond, and go off to the other distillery and get his neighbors there, anil have less trouble. If he is running a large distillery he will have to go to town or off to the river i)lantations to get some of those big men to go upon his bond. Q. And that has to be done every month ''. — A. It is the only advan- tage they have now. Q. You don't know another advantage! — A. No, sir. A man may be able to run a large distillery and not have stock soujetijues to eat u[> the slops; but that is where the biggest profit is in distilling,, in the stock. Q. Then he wonld want his capacity reduced ! — A. Yes, sir. Some- times they get out of stock ; hogs take the cholera and die; then he ha.S'. to stop altogether if he is running a small distillerj"^ Q. Do you recollect when Mr. Clarke was sent down,.orrecommendetl by Mr. Perry, and Br. Mott appointed him ? — A. Yes, sir.. Q. That was in 1872 ? — A. Y"es, sir. Q. Did he take entire charge of the whole oftice?— A_. Yes-, sir. Q. In order to show you men how to conduct it?— A^ Well, sir, I Just believe he came there to stay. None of us knew" anything about the revenue service. Q. And Dr. ^Nlott was recently appointed? — A. Yes,. sir. Q. Did Dr. Mott turn over everything to him and let him run it? — ^Ao. Yes, sir ; he had everything in charge. Q. How long did he stay in charge of everything in that way t — A. 1 don't know; he was in charge up to 1874, I think. Q. Did it embrace the time that Kestler's voucher.s were put out here? Of course it did, if it was '74. — A. Yes, sir, Q. Mr. Clarke stated in his evidence that he issued those vorochers that were disapi^roved, supposing Kestler was one of the deputies. Was^ it the custom amoiig you officers to let Clai ke sign your uauu's to these? S. Mis. UG 11 162 COLLECTION OF INTERN^VL REVENUE IN formal papers that were sent in? — A. Clarke did all my writing for me made out my reports and .sij>ned my name while I was not there. Q. Was that the case with other officers? — A. I think that was tlie €ase with most of us. We did not know how to make out our jiay ac- counts or anything else. Q. Did he make out the general statements and certificates of Dr. Mott?— A. Yes, sir. Q. Do you know whether he signed Dr. Mott's name in his absence sometimes? — A. He signed Dr. Mott's name, sir. Q. We are under the impression tliat Clarke said, wlien on the stand, that Dr. Mott signed a certificate in connecticm with this Kestler matter. I will give you the paper and have you say if it is his signature. [Ex- hibits 10 and 17 handed to witness.] Look at both the original and amended abstract. — A. [Examining.] The doctor did not sign that, the "original," and did sign the "amended." Q. Is that in regard to the Kestler ? — A. Mr. Kestler's name is on the original. Q, And you say that certificate, or the original, is not in Dr. Mott's handwriting? — A. The original is not; the amended is. Q. Kestler's name is out of that amended one Dr. Mott signed? — A. So it seems; out of that one. Q. What is the date of that?— A. December 31. Q. You say he did not sign the certificate to the original? — A. No, sir. Q. The original embraces Kestler's voucher? — A. Yes sir. Q. And the amended does not embrace Kestler? — A. No, sir. The Chairman. Mr. Pool, you have not x>ut the i)reliminary ques- ..Jtions to the witness as to his acquaintance and familiarity with Dr. Mo t's handwriting. Mr. I^ooL. I will do so. Q. (To witness.) He did sign the amended one in that instance? [Ex- hibit n handed to witness.] — A. Yes, sir; I think he did. Q. Now, you have stated positively that Dr. Mott did not sign those Aouchcrs; do you know Dr. INIott's handwriting? — A. I think 1 do; I Jiuow his signature; would not say 1 know his writing. Q. You have been in his employ as deputy and ganger many years? — A. Almost ten years. Q. Have you seen his signature a great many times'? — A. It was signed by (UttVrcnt offi(;ers and signed by myself a great many times, to see if we could distinguish it from any cleik in the office. Q. You know when it is signed by himself and when it is not? — A. Yes, sir. Q. Was it generally understood that no one c(mld sign Dr. Mott's name so that it could not be distinguishable from his own signature? — A. Yes, sir; we all gave it uj). Q. Y(»u could not sign it like he signed it? — A. No, sir. (}. Do not some of I)r. Mott's officers sign his name in the ordinary course of business? — A. Mr. Brown signs tlie stamps, and Mr. Coite the reports. t^. \'on all ga\(' np trying to sign his mune as he did himself?— A. Yes, sir. Q. J understood yon to say that you commenced as a ;iper to witness] aner and see whether it does not appear you com- THE SIXTH DISTRICT OF NORTH CAROLINA. 163 inenced the 2Ist iustead of the 1st of October. — A. No, sir; I commenced the 1st of October [examiiiing-J ; that is the 21st of October. Q. That is a record from the department which shows it? — A. Yes, sir. Q, You were, then, mistaken? — A. Yes, sir. The Chairman. That only shows when his pay began, not necessa- rily his commission. Mr. Pool. Only shows his pay began when Kestler's ceased; lie took Kestler's i)lace. Adjourned till to-morrow, June 30, 1 p. m. Washington, D. C, June 30, 1882. The committee met at 1 p. m. J. T. McIntosh sworn and examined for the government. By the Chairman : Question. Where is your residence"? — Answer. Alexander County, North Carolina. Q. Were yon at any time connected with the service of the Internal Eeveuue Department? — A. Yes, sir. Q. From when, and to when ? — A. I thmk I was a])pointed in 1872, by Colonel Henderson ; that is my recollection about it. Q. How long did you serve ? — A. I have been engaged off and on ever since until the last year ; about nine years was all the time I was in the service. Q. In what capacity' ? — A. I was first aj)pointed assessor ; I think I was next appointed special deputy ; that is my recollection under Dr. Mott. Then I was a[)pointed ganger, and afterwards was appointed storekeeper and ganger, and also held the office of surveyor — the last office — of brandy distilleries, fruit distilleries. Q. How much service did you render in 1873 ? — A. I declare I don't remember. Q. I see a voucher here purporting to be signed by you. Is that your own signature ? (Handing to witness.) — A. "J. T. Mcintosh, Deputy." Y"es, sir ; I think it is. Q. (Reading.) "J. J. Mott, collector of internal revenue 6 district of N. C, to J. T. Mcintosh, Dr., for services rendered as deputy of the dis- trict of N. C. during the period commencing May 1st, 1873, and endiug June 30, 1873, inclusive; two months at the rate of $1,200 per annum, $200. The services were performed at Taylorsville, Alexander Co., Newton, Catawba Co., and were of the following character : Looking after persons liable to special tax, taking return of distillers and manu- facturers of tobacco. Received payment, J. T. Mcintosh, Dept'y Coll.," with the usual affidavit. Did you render that service for May and June, 1873 ? — A. Yes, sir ; I was employed about that time. Q. Did you receive that money, $200? — A. I received $100. Q. Only $100?— A. A hundred. Q. Why did you not receive the other? — A. Dr. Mott gave me a €heck for $100 on the Statesville Bank, and afterwards told me that some of the other deputies, Mr. Lillington and others, were not getting some of their pay ; that the approjn'iation had fell short, or something to that effect ; and that he would have to pay them some out of mine, and paid me $100. 164 COLLECTION OF INTERNAL REVENUE IN i). Tliat was all tliat you ever received for this work i — A. Yes, sir ^ that is my recollection as to it. Q. Were the deputies all paid the same, or some more than the others ? — A. They paid differently; some higher than $1,200, one $125, and perhaps higher. Q. I see in that abstract which contains the amount of this voucher, the amended voucher j)urporting to be Exhibit Xo. 11, that you did re- ceive $171 ; you say that is correct? — A. Ordy one check for $100. Q. During the time you were in office what political assessments were jou called upon to pay f — A. I never was called upon to pay very much. I believe I was direct Iv called upon at one time. Q. Whom was that by ?— A. Dr. Mott. Q. What part of your salary then were you called u])oh to ])ay ? — A. He asked me to indorse a check for $98. Q. Did you do so ? — A. I did not. Q. When was that! — A. It was in March, I think. Q. What year?— A. Last year, 1881. Q. Was there any canvass on hand then? — A. No, sir; I think not. Q. What did he say were the necessities then for the money ? — A. He wrote me a note stating that he was starting away to Washington and he was badly behind in campaign funds, and very much "annoyed" — I think was the word he used — generally. He re(iuested the check, and asked that I would indorse it and forward it to Washington City, care of the Ebbitt House. Q. Which you declined to do ? — A. I did not do it. Q. How long did you stay in the service after that? — A. That was in March. I had not worked after that, except a month-s work surveying- fruit distilleries in July, I think, and in the month of August. Q. Did you get anv more work after that excei)t surveying ? — A. That- is all. Q. Were you dismissed, or did you resign ? — A. Xever dismissed that I know of; if so, never notified officially. Q. You are put down here in the " List of subordinate officers dis- missed on charges in the sixth district North Carolina during Collector Mott's term of office " — discharged from the office of storekeeper and ganger December 2r), 1881, by Collector Mott, because of being ineffi- cient and inattentive. — A. 1 have never been officially notified of it. I have seen that since I came up here. (}. Do you know anything about stoiekee[)ers dividing their pay with er or distiller say that they di\id<'d * — A. 1 licanl people say they had been asked to do it. (). r.y the distillers .'—A. Y<'s. sir.' i}. HaN'cyou heard any distiller say he would have it done, or intended to have it done? — A. 1 heard them say that if they did not do it they wouhl not run; if they did not get the right kind of storekeeper, or som«'thingof that kind. i). You say that is the general iin]n('ssion in your country that it is done? — A. To some extent, (). Do you know of any lettrr written from the collector's office ask- ing about tln^ j)oliticsof tlu^ young men in the service? — A. 1 do not know that I riMncnihci' about tlic letter. Thaign. Q. Tlicn 1 understand you to say that in nine years' service, for wliicli you re(;eived not less than $5,000 as a Kepublican officer A. I just mak(! tliat as a rough guess. (i. Not less fhan fhat — you never contributed for ])arfN purposes ex- ceeding $50 ill! told ?— A. "l do not think I did. i-i. And fhat if the $71 in (piesfion had been added to that $50, it would nof, in your judgnu'ut, haxc l)ep<)sed the cami)aign debt had been arranged in full, and at that time he did not tfeclahle to contribute the amount asked for; but, if the fuud had not been arranged Ithat lif was willing to contril)ute whatever amount was right. At this time the depo- mcnttsays the said J. .1. Mott, collector as afon'said, was due liiin, the said .1. T. Mcln- *08li, J'". S. st'k'r and g'r, one hundred and four ,",,",, dollars for services reuderd as such oSk-er at the distillery of Price iV Uro., of Alexander Co., in said district, for the axKnitJi of June, A. D. 18H(), just nine mouths ])r('\i(Mis. lropriatiou of said year, and that I had to wait for a deficieiu'y bill to )l)epaKs<'d by CougrrsH for several months(i)robably :i or 4). He did communic!ite with «aul oflice <".n thr subje<-t of said check, on orabout the of , A. D. 1^81. He. the H.-iid dcjioneiit, .). T. Mcintosh, wrote a letter to W. .1. Coite, cliief clerk of J. J. Alott, <ersonal knowledge that when a •voucher on 107^ is tilled and oftiier is to be ))aid, a, check is inadi^ out ))ayabhi at the liabigh \:it'l I'.imk at Ivaleigh, \. (.'. The deponent knows that it is the usual CUH- i*>m in sai will swear that the signatnre is not his, anil that he did not authorize or give a power of attorney to anv pei'son whutsoever to endorse saiil check. J. T. Mcintosh. Snliscribed to and sworn hefoie nie this 11 dav of Oct., A. D. 1881. [L. s.] ' A. D. COWLES, i>. C, U. S. Court, Jf'cst. Dist. of N. Carolina. I find ill the same executive document an oflicia! letti'V of Dr. Mott's in regard to and in explanation of that afhdavit of ."\I v. .Mclnto.sli, wliich I also desire to insert. The Chairman. Do you think ])r. iVFott's afhdavit ought to go in when he is here and can testify himself as to the nuitter ? .Mr. Pool. If we take some extracts from this executive document, we liave a right to take any other. The Chairman. Suppose he was on the stand, would you Avant it in then ? Mr. Pool. Yes, sir, even then. (Marked Exhibit 28.) Etply to (iffidarit of J. T. Mcintosh. Collector's Offick, (ixii Dlst., N. C, Stalcsrillc, Jan. Kdth, 1882. Hon. Gkkex B. Raim, Com'r Inter, liertnuc, Washinr/ton, D. C. : Sir: I have the honor to acknowledge the receipt of a copy of an affidavit of J. T. Mcintosh, late storekeeper & ganger in this district. It seems hardly necessary to make a reply to his statements. He admits receiving every dollar due liim, bnt complains that he was requested to aid the Re[»nblican com- mittee, which he declined to do, anply, according to affidavit of !Mr. Coite, he ref[uested the cash, and the check was juade payable to bearer, the cash rec'd for it, and st^nt to him in this way for his accommodation. This is frcfinently done in the office (checks made payable to bearer and the money remitted instead) for acconnuodation of those who might find difficulty in getting their drafts cashed where thej- reside. Verv respectfullv, JNO. J. MOTT, Collector. I Slip cut from tlits Guide ol' April 1, 1881.] The long-delayed pay for June, 1880, services, due storekeei)er8 and gangers, will be forwarded to the parties entitled within the next ten days. B. United States Internal Revenue, Collector's Office, 6 District, North Carolina, StatesvUle, June 21st, 1881. J. T. McIntosh, Esq., S. and G., Taylorsville, N. C. : Sir : Your June, 1880, pay has been in this office awaiting your order. Not having called for it, a S. & G. is presumed to have disposed of the claim, & the cash is held until presentation by the holder. 170 COLLECTION OF INTERNAL REVENUE IN I enclose your salary for Jime, 1880, as P. and G. as per act. rendered &, allowed, bring one hundred & four dollars (¥104). Please acknowledge receipt. Eespectfnllv, .1. J. MOTT, CoU'i:, Per C. C. To whom it may concern : I have examined an affidavit (copy) as made by J. T. Mcintosh, late stkr. & ganger in the 6tli dist. No. Ca.; and in the matter of the payment to him of the amount due him for services during .June, 1880, am able to make the following statement : For want of appropriation, the payment of all ^^.'sof stkr. & gangers for June, 1880^ were delayed. The money therefor was not received at this office, and deposited to credit of Coll'r's D. A. until March 28, '81. The checks on it were dated Mar. 30, '81. but were not completed (tilled out, signed, &,c.) until about April 10, '81. The delay in the payment of these accounts had tended in many instances to work hardship to the officers to whom it was due, and they (needing their money) had dis- counted or cashed the claims, and numbers of the orders were tiled in this office. When the cash had been received from Washington a notice (see appended paper marked A) was inserted in the " Guide," an official paper published monthly from this, office and sent to every officer in the district. It was decided imprudent, in view of many orders, to remit to each S. & gr. with- out having first heard from him that there was no lien upon the amount originally due him. Though this course was strictly adhered to, the records show that within a few days of the receipt of the money and of the notice in the "Guide," but few of the amounts due (checks) remained on hand ; it appears that Mcintosh's was one ; for on or about June 5, '81, I received from him a letter — addressed to me as dep'y coll'r — requesting me to scud him his cash for June, '80. To oblige him, as I then thought, I obtained "cash" for his check, and after ascertaining from him that he had no orders- "out" on that pay, I sent him the money in a reyisiered letter, as he had requested, i enclose a copy of said letter, taken from the official copy-book in this office, wherein I at the time copied it (B). I may add that I have never received from Mr. Mcintosh any acknowledgment of the receipt of the amount by him. WM. J. COITE, Deputy CoIVr. Signed and sworn to before me this 16th day of Januarv, A. D, 1882. J. FRANK DAVIS, B. Eeyistry receipt. Deputy Collector. Post-office at Statesville, N. C. Registered letter No. 883. Rec'd June 21, 1881, of J. J. Mott, addressed to J. T. Mcintosh, Taylorsville, N. C. L. A. SHARPE, P. M. Q. You have your mind clearly upon the campaign of 1872. You rec ollect it — the Grant campaign I mean! — A. I remember that he ran in 1872. Q. Was it not a very hot and earnest campaign in Xorth Carolina ? — A. Yes, sir. Q. It was at tlie time Todd 11. Caldwell ran for governor ? — A. 1 do not remember ; 1 8n])pose it \vas about that time. il. Well, in that campaign, when Mr. Caldwell was running, was it not a hot ciiiii])aign and earnestly contested ? — A. Yes, sir; very hot. ii. Especially .so in this sixth district where Caldwell lived? — A. Pol- itics ran pretty high. i}. Was there not a great deal of work done by both i)()litical parties at that time? — A. 1 think there was. il. Were not the revenue otiicers and other officers of the United States, esjiecially postmasters, active in that cam])aign '? — A. 1 suppose they were, but not moi-e, so 1 think, than any others. (^. IIav<' yon any reeollection of having contribute*! any amount dur- ing the year J.S7^; while the cani]>aign was going on ? — A. I do not re- THE SIXTH DISTRICT OF NORTH CAROLINA. 171 member; all tlio Avoik I did in 1872 was under Colonel Henderson, assessor. I did not do any work under Dr. Mott in 1872. I only worked two months under Colonel Henderson. Q. The assessors were all broken up in May, 1873, following ? — A. Yes, sir. Q. And then yeriod that is here; then there is one for May and June, 1873, two months — $250 — when they increased the rate to a hundred and twenty-five dollars a month, service described to have been renpear there as a deputy, and in the amended abstract it is put down for $235. Can you tell me why the original voucher did not contain your name? — A. No, sir; I cannot. Q. Was ever any explanation given to you why it did not ? — A. I did not know till now that it was not on the original voucher. Q. Itisso,isitnot? (HandingExhibitl4 to witness.) — A. (Examining.) I see it is not there. Q. And you were doing duty regiilarly at that time? — A. Y'es, sir; I left all my business of that kind with Mr. Clarke. Q. Yon say that the revenue officers had a very hard time down there for several years ? — A. Yes, sir. 176 COLLECTION OF INTERNAL REVENUE IN Q. Tliey were abused, reviled, and so on. Did any of tbeni behave in such a way as to give ground for the disrespect of the community ? — A. I do not know; none I ever had with me ever did. Q. You got into some little trouble yourself, did you not? — A. Yes, «ir. Q. And was indicted in the courts ? — A. Yes, sir. Q. And went aw-ay in consequence of it? — A. No, sir. Q. That was not the reason of your going off? Mr. Pool. In the State courts ? The Chairman. The State courts. Q. What were you indicted for? — A. For disturbing a camp-meeting. Q. How did you disturb it ? — A. 1 did not disturb it. Q. What were yon doing that you were accused of disturbing a camp- meeting ? — A. I was accused. Q. How so ? — A. I had three or four Democratic enemies, very bitter against the reveiuie officers, who swore out a warrant for me, and L refused to be arrested. Q. What did they accuse you of doing as the reason for swearing out a warrant ? — A. Disturbing a religious camp-meeting. Q. How so; what was the actf — A. I do not know. I never saw the warrant. Q. But you heard what they accused you of? — A. That was all I ever heard ; I never saw the warrant. I never saw what was brought against me. Q. Did they not accuse you of taking out of your i)ocket one of those things that was called a "cundum"? — A. I believe that was sworn in the court-house. Q. And you blowed it up, so as to resemble a man's penis, and showed it to the ladies ? — A. 1 do not know whether that was sworn to or not. i). Was not that the accusation? — A. For something of that kind; not sworn against me, sir; it never went to trial. i). It was never brought to trial. The case was fixed up only by Col- onel Armfield a|)pearing for you, you submitting, and jlidgment sus- liended on payment of the costs? — A. No, sir; Armfield was not em- ployed. Q. In speaking yesterday of the danger attending revenue officers in the execution of their duty, you used the word in some of the " danger- uus " counties; which one do you consider was of that kind?— A. I con- ^sidered Wilkes — some i)arts of it. (^. And Yadkin? — A. Xo, sir; Yadkin was not a very dangerous county. The South Mountains was the dangerous i)art of the county. Itight in the three corners tlu're where Catawba, Cleveland, ami Lincoln run u]) there a little ways, and Polk County, called the "Dark Corners," right on the South Carolina border, by Tryon City, was considered dangerous. (,). Was not \\'ilkes County a IJepuldican county at that time? — A. \'es, sir. (.). Was not Tolk County licpublican at that time? — A. I am not ac(iiuiinteeoi)le ? — A. No, sir ; none iu my squad ever did that. Q. Have you m)t heard complaints of that kind from the people ? — A. I have heard comi)laints of everything against the revenue officers. Q. Do you know whether the revenue officers did not some time ago go around with the marshal making ai rests ? — A. Yes, sir. Q. And do you not know that it was charged and believed that these nu^rshals carried warrants signed in blank, so as to arrest any one they l)leased ? — A. Not that I know of. I think the marshals had instruc- tions if they caught a man in the country violating the law they had a right to arrest him. Q. They had blank warrants ? — A. They held warrants, I know. They rode out always with warrants, and the marshals worked under those instructions. Q. They rode out with warrants ? — A. Y"es, sir. Q. Now, the marshal along with you, finding a respectable man, but whom he believed was a man worthy to be arrested for something, did the marshal go back to town for any commissioner to sign the warrant, or did he just pull the warrant out and till it up ? — A. I think generally they had a name on them in my squad. Q. How is it that when a young Democrat received an appointment he was expected to vote the Republican ticket ? — A. No, sir. Generally it was expected when he appoints him the Democrats will kick him out, and he will have to come to the Republicans. Q, And the result is he does come ? — A. They kick him out every time when he starts. S. Mis. IIG 12 ■ 178 COLLECTIOX OF INTERNAL REVENUE IX Q. ])() you not know of some cases when? men were indicted for blockadinr^', and jiidginent was suspended against them, and they came out gooil l{epul)licans ? — A. I do not know as I do. Q. "What about Jim Williams ? — 'A. I do not know anything about 3iiin. Q. Jim Williauis was a tierce Democrat at the start, was he not? — A. "Yes, sir. Q. Did he not get into trouble about blockading ? — A. I thiidc he had ;'Some whisky seized in Statesville. It is my recollection of it, but it is before my time as a revenue ofiticer. Q. Did he not come out a good Republican after paying the costs? — A. I don't know whether he is a good Republican or not. Q. He professes to be ? — A. He professes to be. Q. Did not Tom Coo]>er, the i>resent collector, have some illicit whisky seized ? — A. Xot that I know of. Q. You never heard of that ? — A. No, sir. Q. His teams seized and sold, and he was bound over before Mr. Holmes, commissioner at Salisbury ? — A. I never heard of that. osition did he get in the revenue service ? — A. A deputy collector. Q. O. M. Barkley was a Democrat was he not ? — A. Not that I rememl)er of. i). AVas not Hayne Davis a Democrat? — A. I cannot say. i],. Was not John Peden, in Wilkes County? — A. Y"es, sir. Q. He became a Republican and got what office ? — A. J do not know ; Le is a Republican now. Q. When you were in Illinois, did you write for the voucbers to be sent to you, or did somebody write to you and ask you to send a voucher? — A. I left ]Mr. Clarke to attend to my business forme. He wrote me that he had lost my vouchers, or had misplaced them in the ofHce, and asked me to make new \-ouchers, so as to get my njoney. (^. Did you know when Mr. Clarke went out? — A. No, sir; I do not rememlter. Q. It was in 1874, was it not ? — A. Y'es, sir ; I believe it was, I don't remend)cr, Q. You told us yesterday that these certificates — abstracts of the original vouchers — were not in Dr. Mott's handwriting, that one, for instance (handing the witness an exhibit of 187.}) ; you said the same Ihing of those of 1872? — A. The last one I did not hardly think was. 1 am not as ]H)sitivc of it as of the two first. (^. Did you cvciImmi' Dr. >I<»tt deny that these were his signatures ? — A. Xo, sir. (I. Did you ever talk witii Mi. Clarke about it ?— A. To Joe Clarke? No, sir; never. Q. He was gone ]»etoir xou came l>ack from Illinois ! — A. No, sir; THE SIXTH DISTRICT OF NORTH CAROLINA. 179 lie was there when I came baek from Illinois, He staid under Cooper awhile. Q. Did you never talk with him al>out it? — A. Xo, sir; I never thought about the ])apers. Q. Did Dr. ]\Iott ever say to you how it came that he ])ut in vouchers that were not true; that Clarke had prepared them and signed just as a matter of form without his looking at them ? — A. Xo, sir. Q. What did he say to you about it ? — A. He never said anything to me about it that I remember of. I don't think the Doctor ever talked with me about the matter. We were talking about Clarke's conduct in the ottice, and so on ; that the influence of whisky had made Clarke make mistakes, and so on. Q. Was Clarke a dritdving man ? — A. Yes, sir; he got on a little sj)ree occasionally — a good-sized one. Q. IIow long did he do that before he left? — A. I think he quit drinking before 1 left, or afterwards; he had been on a spree and straightened up. There was not a great deal of work in the oflice very often. When he got his business straightened up at the end of a month, he would go on a spree, especially Avheu the doctor was off; whenever he heard the doctor was in town, he would straighten up and go to work. Q. Would Mr. Clarke accomplish the work very fast — did he do his work fast and well ? — A. He was a very good clerk when straight. Q. ])id he get ahead of the business and then take a spree? — A. He would get up with his business and take a spree. Q. Is the doctor about the office much ? — A. Yes, sir. Q. Did he give i)roper attention to the duties of his office ? — A. I was not capable of knowing what the i>roper attention was at that time. He was there in his room when he was in town all the time ; quite often ; nearly always writing in the private office of his own. Q. He was present then at his place of Ijusiness, in his private office, nearly all the time"? — A. Yes, sir; but he paid very little attention to the revenue part of it. I don't think he knew much about it. Mr. Clarke was the only man he had there who did. Dr. Mott was there sometimes, but did not know anything about the reveune business. Q. When a deputy is appointed and commissioned was there usually a record made of it at the office ? — A. I don't know, sir, whether so or not. Q. Would they put down in the book "W. ]\I. Walker, appointed deputy" such and such a date ? — A. It is now, but at that time I don't think it was. I don't recollect of any account being kept of it. Q. When a man is discharged, is there any entry made in the books of it ? — A. His name is Just crossed out in our list. Now there is public list for every one, showing each deputy', his division, the county where he works; but nothing of that kind was done at the time when Clarke was there. Q. At that time, in 1872, how many deputies were there ? — A. There were only three regular deputies, I think — three or four besides Clarke. 1 don't know them. Q. There were not so many that the chief clerk was likely to forget them, would he? — A. No, sir. He might forget them in ten years; I could not tell Avho the deputies were at that time. Q. At the time he made out the vouchers he would hardly forget who was in the office ? — A. Mr. Clarke said that he forgot that Kestler was not a deputy. That is very likely, because changes are made there from one time to another. 180 COLLECTION OF INTERNAL REVENUE IN (}. Mr. Clarke, the chief clerk, knew all the changes, did he not ? — A, He ought to have known it. Q. When drawing money from the government, he ought to know who was to draw it ? — A. Yes, sir, I think so. Q. If he made out vonchers for men who had not been in the office for nine months, would you think that he forgot that honestly ■ — A. 1 have no doubt he did — not in the least. Q. Perhaps he was on one of his sprees at the time ? — A. When there making out reports he was always on a sort of a spree; he would write just as long as he could when he got on one of those si)rees. Q. Would he not be apt to remember, when sober, tliat he had made out a voucher for a man who was not in the service at all? — A. 1 don't know. He was one of those sleepy-drinking kind of men. 1 have known him to sleep about 24 hours in the day. By Mr . Pool : Q. Talking about the matter of Mr. Clarke where you left it oft', you say he was sent down by the supervisor in 1872? — A. That I don't know, sir; I only remember of being introduced to ]\[r. Clarke as Dr. Mott's clerk. Q. Everything was left into his hands during thatsummer of 1872 ? — A. Yes, sir. Q. Was not Dr. Mott oft' in that campaign ? — A. He was gone a good part of the time. Q. Was he not away from town a good part of time on other busi- ness? — A. Yes, sir; I don't know what the business was. Q. During that time in which he was away, Mr. Clarke would get on these drinking frolics of his ? — A. Yes, sir. Q. And you have no doubt that Mr. Clarke honestly made the mis- take of putting Kestler's in when he was not in ? — A. I have not the least doubt. - Q. You were asked just now and were shown one of the official vouchers of the department, extending from October 21 to December 31, whether your name appeared on the original abstract that was ])ut in. You said your name did not appear on it at all, but on the amended abstract '. — A. Yes, sir. (}. Did not Mr. Xestler's name appear on the original abstract in your ])lace ? — A. I would have to look at it. (The abstract handed to the witness.) (Examining.) Yes, sir. Q. Kestlers name appears there when your name ought to appear ? — A. Yes, sir. Q. And that is the mistake that ]\Ir. Clarke made about which all this fuss occurred ? — A. I suppose so. (}. That was corrected in the amended voucher your name i)ut in ; nn. Do you recollect shortly alter this Mr. (Clarke (piit drinking ? — A. I don't know. Mr. Clarke wouhl stoj* every time the doctor wouhl come liome iuid sctit ol" pin down on Iiim whatever tinu' he could get to see him. Clarice would "o olf and hide him.self The doctor woidd come THE SIXTH DISTRICT OF NORTH CAROLINA 131 to see biui aud make bim straighten up. and then he wouhl stay sober •until everything- was straightened up. Q. That went on to some time in 1874, when Mr. Clarke went out of the service ? — A. I (h)n't know exactly what time he went out. Q. You acted both as a ganger and deputy part of the time and drew )»ay for both? — A. Yes, sir. (^ The items you gave of $235, up to December ;>1, and 83CM) from thence to ^larch 31, and 81G4.S3 thence to ]May l'o. were paid to yon as a deputy ? — A. Yes, sir. (}. And they aggregated, I see, 8G!)9.S3, which you stated in your original examination you received at the time as deputy f — A. Yes, sir. Q. That did not end)race anything yon receiveenses. Q. Were they correctly made up ? — A. Y'es, sir. Q. Were they allowed l)y the department ? — A. Y'es, sir. Q. Did you render service honestly for the amounts for which they were made up ? — A. I did, sir. Q. Did the department afterwards cut down that allowance ? — A. Only where I Avould make a mistake. Q. Did they afterward change that mode of paying gaugers ? — A. Y'es, sir. It has been changed two or three times since that day. I am not exactly acquainted with the amounts paid them now ; think it is changed a good deal. Q. You were speaking of how they were paid at that time ? — A. Yes, sir. Q. If you had gauged sufficient spirits your amount, instead of being $100 a month, might have been two or three hundred dollars or any other amount — might have run away beyond these amounts ? — A. Y'es, sir. We had an order from the Commissioner some time in September, 1872, that we would not l)e allowed over $0 a day ; that our amounts in the month shouhl not run over 89 a day. Q. That would be 8270 a month ?— a\ Yes, sir. Q. Y'ours did not exceed at anytime 8100 a month? — A. That in- <'ludes expenses, 89 a day for gauging; allowed $3 a day for horse and buggy. Q. Were you active, personally, in political campaigns al)ont that time? — xV. Xo, sir; I always did a little talking where I was passing along. 182 COLLECTION OF INTERNAL REVENUE IN Q. Weie yon guilty of the charge brought against you about disturb- ing that canip-nieeting ? — A. Well, the luen who swore I distnrlted the oanip-uieetiug were a hundred yards otf. After they undertook to arrest me 1 disturbed them right smarth'. Q. How i — A. I knocked one of them down and kicked two or three. Q. What became of the prosecution t — A. It was compromised. Q. Do you recollect if the prosecution was during the time of your residence in the West — did it get into court? — A. Yes, sir. I did not appear: I never saw the warrant. I did not get wind of it before I got there; they said that it' I paid the costs they would let me oft". I never l»aid any attention to it. I was ilxing to leave the State of Xorth Caro- lina at the time. Q. You did not want to leave with this hanging over you ? — A. Yes, sir, I left. I was going to leave any way; I did not allow them to arrest me, but I did not stop for it. I got out of the county before the grand jury met. Q. Were you under the impression that it was a piece of political l)ersecution .' — A. Yes, sir. Q. You said just now that a few of your political enemies in that par- ticular locality got it up ? — A. I always thought that and always will. One of them was a relation of mine. Q. And tliey dismissed the prosecution on your payment of the costs ? — A. Yes, sir. Q. I think that a warrant, or a copy of it, has been on exhibition here, embracing 3Jr. Thomas Cooper's name, the present collector, as- having violated the internal-revenue laws, by blockading occurring in 1SC7; that was 15 years ago, was it not ? — A. I was not there 15 years ago. , Q. That was before vou went into the service ? — A. I did not go in till 1872. Q. You never heard or knew anything about it ; it occurred back in 18ij7, and tbat will explain why you did not hear of it ? — A. Well, sir, it might have died out by the time I got old enough to pay any atten- tion to it. I was at school at that time. Q. Did you know he was never indicted on account of it at all ? — A. I know nothing about it at all. I never heard he was accused of it. The following witness was called on behalf of Dr. Mott. H. X. DwiRE sworn and examined. ]}y .Air. Pool : (Question. F desire to examine you about the assessment for oftice ex- ]>ciises. Will you state whether there was an account made up of the disbursement of money collected for office expenses ? — Answer. There was. Q. Will yon state anything about what you know of it — the way it was done, and whether the money was honestly exj^ended or not, and all about it ' — A. There Avas no allowani-e nmde for certain expenses that we had to incur. That we in the oflice had paid for sometime, and the (tircular was issued by Dr. Alott calling on the other olFicers toassist. Tliat it was not right for a i)art to i)ay all and others not. He wanted lit equaliz(^ it, and it was applie*! as needed, for those necessary ex- penses connected with the oflice. i). That was done for the jturj^ose of e(|nalizing the weight that was thrown upon the ollice, by tlie failure to allow certain expenses that were necessary .' — A. Yes, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 183 (^). Did yon keep an account? — A. Yes, sir. I made up an account wiien the revenue a<;ent called for it. (}. Was tlie amount that was collected lionestly expended for that purpose t — A. It was. Q. For no other ? — A. Xo other, to my knowledge; and it could not be exi)eudeaid when 1 was there. Q. You think these disbursements were honestly conducted in all re- s])ects? — A. They were. Q. How much' did each officer pay ? — A. It varied considerably mi amount. (^ liecau.se it was 1 i)er cent, of the salaries ? — A. That was called for,, but some <3.20 ? — A. What- ever it was; whatever I found the memorandum set dou^n. Q. Do you think he ever paid to any one more than that ? — A. 1 do not think he did. Q. Did you send out any letter 1o those making inquiry in regard to what amount they had ])aid for office expenses? — \. Yes, sir. I did. Q. AYhat did that letter contain, and for what purpose was it writ, ten ? — A. That they ntiglit answer the leiter from the Commissioner cor- rectly. A good many i)eople wrote to know what amount they had 184 COLLECTION OF INTERNAL REVENUE IN given. They had kept no niemorandnm. I looked at the book and wrote them the amount, and answered some other inquiries also that they made about it. Some did not understand the letter — what it meant — why it was sent out. Q. It allVelated to this office expense?— A. Yes, sir; I so explained to them in this letter, that it had reference to office expenses alone. Q, You explained that it diarts of the distii(;t. (^. Stat<' whether years ago there was a great deal of trouble in col- Ie<;tiijg llie re\emie, and about tlie slate of leeling on this subjecl, so far as you know i — A. There was. <^. JIas there been much imi)rovement .' — A. Yes, a gicat deal of an imi»i-o\'eiiicnt u]) to the time 1 left tljere, so far as my know ledge ex- tends. <^>. Was Dr. .Mott diligently trying to bring about sucii impro^'e- inents ? — .\. He was. (). Did you notice the geneial conduet of the oflice by Dr. .Mott when under iiis supervision, or the manner in which it was generally con- ducted .' — A. Ves, sir. The sixth iDi.stRicT of is^orth caroLISa. 185 i}. Was it well done ? — A. I thiuk it was. Q. Honestly ?— A. I thiuk so. Q. Witli iiitejirity ? — A. Yes, sir. Q. Dieing a gen- tleman of integrity; but I don't know as I can hardly ex]>ress it — it is in every respect good. Q. Is it bad in any respect ? — A. Ko, sir. Q. Do you know of any man in that country who stands higher so- cially ? — A. I do not. I have heard, as politics were referred to, even a number of Democrats s]ieak of him in the very highest terms socially as a man of high regard. Of course when they speak of him politi- cally it is different. Q. Do they talk about him as a man and an officer ? — A. Yes, sir ; as a man and an officer he stands high. Q. There have been several of these charges and denunciations of improper conduct in the district in collecting revenue ; have they had any effect upon his character at all ' Do they make men think less of Dr. Mott ? — A. I think not; I think he stands much higher to day than possibly he did in the past. Q. Do you think then that the thinking good men of that section believe any of these reports that are gotten up upon him '? — A. I have heard men express their satisfaction that there would be nothing against him that was willfully wrong. Q. Their belief that there would be no wrong ever proved ? — A. That was their belief. Cross-examination, by the Chairman : Q. When this levy was made for office expenses, how may officers were thereon duty in that district '? — A. I do not know for certain ; I suppose from CO to 100 ; might reach a little over on duty at the time — probably 75. Q. The Commissioner of Internal Revenue reports 205 distilleries in operation during the year ? — A. Yes, sir ; about that. Q. Was there not a storekeeper to every distillery ! — A. Those that were operating. Q. He reports that many operated during the year? Mr. Pool. In operation all the time ? The Chairiman. He does not say in operation all the time, but in ope- ration during' the year. Q. There was a storekeeper to each one of them ? — A. Yes, sir. Q. How many deputies were there ? — A. Aljout 13 or 14 regular. Q. How many special ? — A. They vary according to the allowance. Q. On an average, how many? — A. I suppose there would be, per- haps — I don't know as I oould say positively — sometimes on and some- times not, or 8, and just as high as 10 or 20. Q. Would it average ten ? — A. I sui)pose it would average ten. Q. How many general storekeei)ers ? — A. From three to live. In the last vear thev have been increased some. 186 COLLECTION OF INTERNAL REVENUE IN Q. How many were there wben the circular was issued ' — A. 1 think there were there perhaps five at that time. Q. Five general storekeepers t — A. I think, thouy,h I am not positive^ that there was. Q. Now, if all the distilleries were in operation, and all these other officers were added to the clerks, and so forth, it would be about 200 officers to whom this circular was sent oat ? — A. It never went to that many; they were made out one evening. Q. How many were sent out? — A. I think probably somewhere in the neighborhood of a hundred ; not certain. Q. Suppose there were ; that would have been a hundred dollars a month ? — A. Yes, sir. Q. Did your office expenses amount to 8100 a month .' — A. Xo, sir ^ half the amount of it was left. Q. What expenses were there which you had no right to pay for out of the funds of the office ? — A. There was a messenger; the department did not make any allowance for a messenger. Then we had to have some printing done ; the department made no allowance for it. Then we had some other things or expenses which were not allowed, and coidd not be, and we had to pay the money. For instance, postage. Mail matter was held for light postage from persons sending to us forstami)s. Q. Did not the government make any allowance for postage ? — A. This was really persons sending for stamps. Tliey had not paid full ]»ostage, and we either had to let the letter remain in the office or ])ay the postage. Q. The government allows you something for postage ? — A. The gov- ernment don't allow anything in that way tor mail received. The gov- ernment made an appropriation for sending out all official matter. Q. Did it allow nothing for check-books ? — A. Xo, sir ; they decided that the banks should furnish the books, aud the banks failed to or re- fused. Q. How mu(;h did you paj' the messenger ? — A. About $10 a month ; I am not certain ; it was set down in the account. Q. I see in the account tiled here, purporting to be an account prepared 1\V you, that when the account was taken there was $157 there that you had never expended. — A. Yes, sir. Q. What did you do with that ? — A. Part of that was expended for other necessary things about the office by ourselves. AVhen 1 left there, or some time V>efahinc<', was there. (). NVIiiit did you enter it up upiui .' — A. A book". (}. W'n.\t book :' — A. The, bool< I jturchased for it. (}. Wlici-e is tiiat book .' — A. I am not certain : I tliiiilc that was left flifif in tli(^ oflicc sonicw here wlicn I h*ff. (}. Von told tin- coiiiinittcc that Dr. .Mott'scliaractcrw asxciy Iiigh ; that you never lie ird of any offuMal misconduct on his part or an\ t liing against his integrity, and so on. Did you ever hear of anything against his THE SIXTH DISTRICT OF NORTH CAROLINA. 187 officers? — A. I ciumot say; have heard general rniuors agaiust thcin, maybe. Q. What time you were iu his employ you never heard of anythiug Avrong ou the i)art of any of his officers ". — A. If I stated that, I did not meau to say that; I have heard rumors against his officers. Q. Do you know of any charges made and investigated, and store- keepers dismissed for misconduct, and so forth .' — A. I think now 1 have known of some being dismissed. Q. Tliey were not dismissed for good conduct, were they ? — A. I wish to be understood. I did not understand the question iu regard to Dr. Mott and his officers. Q. The committee has charge of investigating the whole system. — A. I want to correct the answer as to the officers: it was alleged — of course they could not be discharged for good conduct. Q. I will ask you if you did not hear of a great deal of misconduct ou the part of the officers, and general complaint ? — A. At one time, some few years ago, I heard a great deal said, but that was a general thing — abusing officers, particularly those iu the revenue — and I paid little or uo attention to it. Q. I am referring to official abuses charged agaiust the collector's office here in Washington, and agaiust the dei)artmeut, and investiga- tions made and the men dismissed, &c. Was there not a good deal of that in that district ? — A. We had a number of officers. I do not think there was. Q. Taking out the large number of officers, do you uot think there was a great deal t — A. Not in proportion to the number of officers, I think. At one time there was some investigation, but I don't know of my own knowledge. When Mr. Crane was down there he had a few discharged ou their reports, after some discoveries. I was not connected with the revenue at that time, and I cannot think of any great number siuce that have been dismissed. There have been some, thougli. Q. What years were you in the office? — A. From 1879 to 1881 I was in the collector's office. I was deputy' collector of a division before that. Q. What did you do iu the office ? — A. I was in the stamp depart- ment; issuing stami^s was my principal business, and I kept up the re- cords. Q. Did you have any means of knowing the amounts of political as- sessments collected iu 18S0 for campaign purposes ? — A. I did not know anything about that. Q. You were there at the office? — A. I was there at the office, but I did uot know. Q. You know that the officers were pretty generally assessed, and paid? — A. I think so; that was the understanding. Q. A month's salary at a time, was it not ? — A. I do not know that of my own knowledge. I have heard some storekeepers say that they paid a mouth's salary. Q. How much did you ])ay? — A. I did not pay anything that year. Inasmuch as I did not, I reckon an explanation will uot be out of place. AVhen the circular of Mr. Cooper catne out, I said my salary would not justify me iu giving very much. They thought of the work I had to do, and then said maybe I would not be assessed, but of course did not say 1 should not be. Q. AVhat was your salary ? — A. Xiue hundred and fifty dollars, at that time. Q. What did Mr. Cooper's circular contain? — A. I am not certain a.< 188 COLLECTION OF INTERNAL REVENUE iN to that. It was calling for contributions, and that it should be about 1 jj)er cent., to the best of my recollection. Q. Who was that sent to? — A. It was supposed to be sent to the offi- cers. Q. To all the officers? — A. I do not know if it was sent to all. I received one. Q. Did you receive it from the office of (he collector, or direct from Mr. Coo])er? — A. I do not know; I would not say on my oath; I may Lave picked it up in the office. I recollect seeing the circular. Whether there was one addressed to me by his hand I am not certain, or whether there was one handed me in the office by some one, or I found it on the tal)le or desk. There may have been one regularly addressed to me. Q. You said you did not pay anything that year; did you pay any- thing in any other year? — A. I i)aid at different times, some months, a voluntary coutril)ution. Q. They were all voluntary? — A. I think I paid the tirst assessment. I received a circular from the national executive committee; I responded to that with some small amount at the time. Q. Whatever sum it was you paid it? — A. I do not know what; it was whatever was convenient, probably some $10 or §15; I don't think ex- ceeding that, and amounts at diiierent times since. What I mean by "voluntary," I may have given to some speaker who came along, to some extent, paying his hotel bill, ^c. Q. Do you know the duties E. B. Drake performed when he was gen- eral storekeeper while you were there? — A. His duty was to withdraw spirits in all the warehouses of his division that were under suspension and haart of the time himself. I have known of his going frequently. Q. Do you know of anyl)ody ever performing this duty for him ? — A. I think on some occasions probably a man by the name of Moss per- formed some for him near Mocksville, his home. Q. Do you know that Mr. J. K. Summers performed that duty for 'him ? — A. I do not. Q. Do you know if Mr. Coite did ? — A. I don't know. Whenever stamps were received from any of the parties purchasing, the general .storekeeper was notified. Q. Was it not a general rule for the general storekeeper to send some •of tlie storekeei)ers out in his place to stamp the liquor? — A. I do not think it was general. lie might have . \\';is tlicrr an Investigation into this contribution of office expen- ses l)y the ( 'oiiiiiiissiitner of iiiteiiial iJevenue, through an agent .* — A- Theie was. (,>. I lia\e lielbic iiif a letter lioiii (Ireen I!, Ilanm, Commissioner, to THE SIXTH DISTRICT OF N'ORTH CAROLINA. 189 the Hon. Cliarles J. Folger; The same is dated Washiugton, Jaiiuaiy 30, 1882, in which this language occurs: Matters concerning certain contributions made by officers "of the district for tlie purpose of facilitating the transaction of business liave been investigated and passed upon. Tlie amounts contributed for this i)urpose wen- about four huiulreil dolhirs, and ha\'ebeen fully accounted tor. As the result of tlie in Vfstigation into this matter, iiu additional allowance was nuule for office expenses, and tlie collector was informed that the practice of receiving contril)utions for such a purpose was regarded witli dis- favor in my office, and it has accordingly been disconrinued. (^. Is that a correct statement ? — A. I think it is. Q. As to that amount ? — A. 1 am not certain as to the amount ; some-- where in that neigiiborhood ; 1 coukl not say ; all the papers were turned over and examined together, with C(>h)nel Brooks and myself. Q. Do you think tliat more tliau about 8-tOO was collected for this. l»urpose t — A. It is over this a small amount; I am not certain; some- where between four and live hundred dollars. Q. Can you state how many illicit distilleries and tobacco factories. Avere broken up by Dr. Mott during the time; do you know how many ? — . A. A great many illicit distilleries; I cannot say how many; I never kept , that account in the office; I never examined the record. Q. I have now with me from the same letter this : During the whole period The Chairman. What period t Mr. Pool. The entire period from the time he went intoithe-ofiice- until February, 1882. one thousand one hundred and seven distilleries and six tobacco factories were seized.. At present the tobacco-blockading business has practically ceased. In proportion as illicit distilling has been suppressed, regular government distilleries have been established, until now the luiraber of registered distilleries has increased irom 48 to 359. This satisfactory result lias been brought about in the face of every (djstacle that could be thrown in the way by the illicit distiller and the tobacco block- ader, and the people sympathizing with them in their efforts to defraiul the govern- ment. Public sentiment, however, has changed remarkably within the last three years, and to-day the officers of the government have the almost unanimous support of the district in enforcing the laws. The system of inspections and examinations has brought the office up to the highest standard, and the improvement in the condition of the district is equally gratifying. Q. Is that a correct statement ? — A. I think it is. Q. From your observation and experience, you think the Commis- sioner has stated it correctly ? — A. Yes, sir. By the Chairman : Q. Do you know Dr. Mott's handwriting ? — A. 1 think 1 do. Q. Look at that, and see if that is his handwriting (exhibit handed to the witness) ? — A. I do not think it is ; it resembles it very much. Q. Turn over and see if that is (Exhibit 1-4 handed to the witness) ? — A. I do not think that is; a great many could copy his handwriting. Q. You could not say whether that was his handwriting or not (Ex- hibit 10 handed to the witness) ? — A. That appears to be more like it; I could not .say on my oath whether it was or not. That looks a little more like it than the other. I have noticed his signature has a nervous- ness about the form of the letters. Q. Look now at that one (Exhibit 11 handed to the witness) ? — A. That don't look tome like it; that ai)pears to be a little nearer, but this "J" (indicating); he never makes "J"' in that way. Q. This is more like his hand f — A. This comes a little nearer to it. 190 COLLECTION OF INTERNAL REVENUE IN Q. You coultl uot be certain of either ? — A. Not certain that either of them was. Q. AYhat do you say to that one (Exhibit 10 handed to witness) ? — A. I cannot think that is his. Q. \Yhat do you say to that one (Exhibit 17 liauded to witness) ? — A. I cannot think this is his; it is a good imitation. Q. I will ask yon if any of these are his? — A. On my oath I coukl not say that either of them was his, John A. Eamsay recalled and examined. By the Chairman : Question. I will ask you as to the signature of Dr. Mott. You know Dr. Mott's signature, do you not; you were his deputy a long while (handing paper to witness) ? — Answer. It is some time since I was fami- liar with it, and I do not see a very great difference in any of them. Q. Could you swear whether that was his hand or not f — A. I would not like to say positively whether that was or not. Q. Could you swear that one man wrote l)oth ? — A. Well, I would be inclined to think that the same man wrote ])oth, because frequently there are more changes than in an ordinary signatnre. I notice a little heaviness in the pen in one uot exhil)ited in the other. The two are Exhibits 10 and 17. Suppose you try these, Exhibits 13 and 11 (handing to witness); look at both of those, and see whether they are in the doctor's handwriting, and if so, which one, or whether one man wrote both? — A. (Exami- ning.) The same party who wrote the others wrote thi^, I think. i). Have you the same criticism as to them that you have made on the others ? — A. Yes, sir ; my recollection of his signature is, that he wrote a little nervously, and did not form his letters very regularly. Q. Try the other two Exhibits, 10 aud 11 ; what do you say to those two (handing- to the witness) ? — A. Jnst about as to the others ; would uot like to say positively. By Mr. Pool : Q. Do you profess to be an expert in handwriting at all ? — A. I used to be, bnt I have uot given any special attention to that for some time. Adjourned until ^^'ednesday, July 5, at 10 a. m. Washington, Thursdan^ JuJij 7, 1882. TIm' committee met at 1 o'clock p. m. Tlie following witnesses were examined in behalf of Dr. Mott. lion. Thomas Settlk sworn and examined. JJy :\rr. Pool: (Question. Where do you reside ? — Answer. .Tacksonville, Fh)rida. (). Wlicre were you residing in 1S70 and 1S78 ? — A. Greensboro, N. C. if. Von are tlie Cnited ^?tutes district judge for the northern district of I-'Iorida ? — A. "\'«'s, sir. (). Ale you well aequaintiMl with the peojde of the 0th colleetion dis- trict of Nortli Carolina ? — A. Yes, sir; 1 have a very general acquaint- ance tlii-ougli that sec.'tion of tlu' State. if. Are you iicquainted witli Dr. ]\lott? — A. Yes, sir; I am well ac- (piainted with Dr. Mott — for the last twenty years. THE SIXTH DISTRICT OF NORTH CAROLINA. 191 {}. Do you know bis standing and cliaracter as a man ? — A. 1 do. (). Please state wbat it is. — A. He is a gentleman of high character, and, as such, Avell known throughout North Carolina; his cliaracter is as good as any man's there. (}. You have heard a good deal in relation to the collection of inter- nal revenue in that district of which Dr. ^lott is collector — rei)orts of malfeasance in oftice, and things derogatory to the general administra- tion of the district, have you not .' — A. I have seen the common news- pajjer comments of the day. Q. Have those reports affected his character at all down there ? — A. I think not, sir. Q. Will you state along about 1876, and previous to that time, and ;i year or two after, when you knew the district, and resided in (Treens- boro, whether there were any obstrnctions to the collection of the rev- enue in that district ? — A. In what particular do you mean '? There were, in that and other districts, when raids were made on distilleries — there were a great many outbreaks and outrages — the otticers were re- sisted frequently, and a good many disturbances of that kind. Q. This is a very extensive district, is it not ? — A. Yes, sir ; a very large mountainous district. Q. State the general condition of public sentiment in regard to the collection of revenue, and to revenue ofrtcials — say along about 1S70, or a year or two i)receding, and the feeling, if you know it, in any way. — A. The whole revenue system is unpopidar throughout, not only that State, but the South. The whole system is quite unpopular, you might sjiy odious, and of course it has l)eeii denounced in very severe terms, and the revenue officers are not in good odor, as a general thing. Q. I wish you to state, in general, from your observation in that dis- trict, whether there Avas, especially in the Cth district of ISorth Caro- lina, and in that section of the State, efforts made to bring opprobrium and reproach uijon revenue officers, the law, and upon its execution — whether special obstructions were not thrown in the way for i)olitical or any other purpose. — A. I don't know as it was confined to the 6th district, at all. For years, I sup])Ose, in the 6th, as well now as for- merly — of course, as I said, it was a very unpopular law, and politicians generally availed themselves of that, and one side attemi)ted to make the other carry the odium and the reproach of the law and its execu- tion. This constituted a good part of our Democratic friends' stock in trade — the denunciation of the revenue laws and the system — and the officers were called " nosers," and " smellers," and so forth. I think that was the general current of political opinion. They held the Ee- publicans responsible for the revenue laws and their execution. Q. Were they denounced in such a way as to discourage officers in the execution of their duties ? — A. They were denounced in pretty round terms; called "nosers," "smellers," "thieves," and "red-legged grass- hoppers," eating up the vitals of the country. That was the fact, not only in one place, but I think the general current of newspaper articles and public speeches. It was in fact an unpopular law, and one side made the other carry the odium of it. Q. AVas that carried beyond what is usual in political warfare — this denunciation of the revenue law and the officers ? — A. I don't know what you would say is " usual," but it constituted a very large portion of the newspaper articles of the day, and jniblic speeches. Q. I mean was it more usual there than in other sections of the country? — A. There is no question but that the revenue system Avas denounced m COLLECTION OF INTERNAL REVENUE IN 'out«^d out, and the officers brouobt iuto ridicule, as iiitich iiM thi^ .speeches 'and articles could do so. i}. Was the general course pursued by the i)oliticians calculated to raise a poi)ular sentiment against the execution ot the law? — A. My opinion is that it was; tbat the course i)nrsued had an ett'ect to bring the law and the officers executing it into contempt before the p('0i)le, exciting opposition to the whole system. It is unquestionably an un- popular system all through the South. Q. I understand you to say, then, that the denunciation of the law and the officers was used for the jiurpose of political ends, and to incite the masses of the people against the Eei)ublican party ? — A. It certaiidy had that tendency. I felt the weight of it, I know, myself. Q. Were you a candidate for governor yourself in North Carolina? — A. Yes, sir. Q. Were you canvassing tbe s.sii'- ^^y friend here used to call them "misers," and sometimes " redd egged grass- hoppers," «S:c.; he used to have an apt way of saying tluiti these fellows^ haut the general character of the sj»eeches in the <'ami>aigu and the drift of the newsi>apers were inclined to bring the whole syst«'in into conte,mi)t and disrepute, ami tl^c! oflicers into (tdium. Q. Was that not a serious obstruction to Dv. Mott in the administra- tion of liis oHice? — \. I (;annot say i»articularly about Dr. .Mott and his district, but in that section of the; State and in the (Ireensboro district . the (tflicers weie fie(|ueiitly resisted, and a good many of them shot. THE SIXTJr DISTRICT 'OF NORTH CAKOLIXA. 193 Q. The purpose of the discussiou and of the newspaper articles was to bring the revenue officers, not only into contempt, but to insult them ? — A. Well, I would not undertake to say what tlu' i)urp()se was, l)ut the tendency was that way. By the Chairman : Q. The purpose was to make votes? — A. I think that was one of the leading- objects. It was a very unenviable aiul uncomfortable positiou for the revenue men to be in. By Mr. 1»ool: (). It excited the public against them ? — A. Certainly. Q. Was it safe for a revenue officer to go unattended and uiuirmed through that country at that time? — A. A great many were shot. Q. Did you think these political discussions tended to incite the peo- ple to attack the officers ? — A. Well, the character of the discussions was calculated to bring the whole thing — to make it unpopular, and the of- ticers executing the law, unpopular. Q. The tendency was to encourage men to violate the law, and to at- tack and obstruct officers in its administration? — A. I cannot say any- thing further than what I have said; they received all manner of de- nunciation. Tliev were denounced even bv the words "thief and "thieves." Q. Did Dr. Mott meet this state of things with discretion and mod- eration? — A. I think so. I have always regarded Dr. INIott as a cool, deliberate man, of sound judgment; that was the light in which I un- derstood him to stand. Q. Did the officers generally behave with discretion and moderation, so far as you know? 1 am not only speaking of what you know, but, according to the course of this investigation, you can state what you have heard; that is, if you have any reliance upon it. I do not mean any idle rumor. — A. I suppose any officer attempting to execute that law in the section of tlie country where I did live, and farther west — Dr. Mott's district — they were likely to meet with opposition, and to in- cur danger in the execution of their legitimate duties. Q. Did Dr. Mott succeed in improving that state of things ? — A. 1 think so, and that, his management of the district has brought about a change for the better. 1 think to-day that the system is not so unpop- ular, nor attended witli so many difficulties as formerly in the execution of the laws. Q. In mixing among the peoi^le you have heard a good deal said about this collection of the revenue. I will ask you whether there was an excited state of public feeling against the execution of the law? — A. Oh, yes; decidedly so; not only through that campaign, but before and since. A great many men regarded it as a legitimate and fair thing to cheat the government in that way as much as they could. Q. Did you ever hear men say so? — A. Yes. It is a common exprt^s- siou down there that the government freed the negroes and made them poor, and anything that they might get out of the government was legitimate and fair. I have heard that sentiment expressed, not on the stump. I never heard of any politicians giving vent to that, but I have heard the sentiment expressed by the liquor men. Q, Have you any doubt that the political speeches of which you liave spoken, have had a tendency to bring the public mind into that condi- tion? — A. Of course it was calculated to do so. S. Mis. 116 13 194 COLLECTION OF INTERNAL REVENUE IN Q. Have you niiy doubt tliat, iu point of fact, it did not largely con- tribute in that direction? — A. 1 have no doubt that ni(Mj by tliat felt encouraged to go further than prol)ably they would have done in resist- ing the law. 1 do not say that any of the speeches that I have heard were intended to do such a thing, but I say tliat the tendency of the general drift of politics was such as to Ining the whole system into odium. Q. You did bear a good niany slanderous reports about it, derogatory to the collection of the revenue and its officers? — A. Certainly. Q. Were not those reports i)ut out by politicians for a political pur- pose ? — A. Why, of course. The Democratic party denounced the whole system and the officers, and the Kepublicans had to carry it, with all its odium. Q. Were individual officers denounced? — A. I do not know that I ever heard any individual singled out. Q. The public took up and re-echoed what was said on the stump? — A. J sup]»ose the whole matter was unpopular, and especially with those ■who were in the trade, and a large number were so, directly or indirectly. Q. The point which 1 want to make clear, and I do not know but I have already done so. is, was this revenue law, its collection, execution, and its officers, made a pointed subject of party discussion ? — A. Cer- tainly it was. ' Q. For the purpose of breaking down one party and building uj) an- other ? — A. Certainly; I used, in the debates I had with my competitor, to allege that there was not a revenue officer seen until after the war; which war was brought about, as I charged, by the Democratic party, and hence the whole necessity of revenue officers, till, as I said, the KepubHcan party paid the debt ■which the Democratic party had put upon us, and then we would see no more of these "red-legged grass- hoppers.'' i). Did you think these slanderous things that were circulate*! were not bebeved by the masses of the people, the thinking, good, substan- tial men ? — A. I have no doubt that Dr. Mott's character has not been aftecter. MoTT. I will ask you if the slanders circulated over that coun- try were not for jtolitical i)urp(Kses, and if they have not grown up in that way until they had become stereotyped talk, and understood all over the country as slanders ; this talk about revenue stealing, ike, has it not been given out by Democratic speakers ami i)oliticians ? The Witness. I thought, doct(u-, that J had already answered sub- stantially tliat tpu'stion in my statement, that uncpu'stionaVdy the aim was to bring the whole system ami the ofli('<'rs into odium, and it Avas doubtless sucitesslul to a certain extent. The system certainly is a very unj)o|»ular one. I believe that in the cam)>aign it was a hard load to carry, and we had to defend it as a necessity at that time. I sui)iK)se the system to-da_\ is uni>opidar, and that unpopularity has been brought aboni liy tliose attacks upon it. I think it is legitimate and fair for any ]»ait\ to attack a system, but 1 do not tliiidc it legit imati; and fair to attack it so as to bring the officers into o"g('r, as was done in this (i^ht l(»ng before that can\ass and since. This is i)art of th& g<'neral politics of the South, and not only of the South, but of the >.'oilli also, the discmssion of the system of i-aising taxes. THE SIXTH DISTRICT OF NORTH CAROLINA. 195 Cross-examination. By the Chairman : Q. In this assault and denunciation of the revenue system and de- partment which you si)oke of, did not the Democratic six'akcrs and members have an excuse in doiiii;' so that the revenue (k'partnjcnt were their active jioHtical enemies; that is, they were incited to do so from the fact that the officers of the department were very active politicians; they did not assail men simply because the revenue system was uni)()p- idar, as it was, but it was also because they were political opixmcnts '! — A. 1 do not know that I ever heard any man singled out; the assault was upon the system, and growing- out of the fact that the revenue men were generally' Kepublicans and very active in their su])port of the party, and of course the Democratic speakers and pai)ers felt it necessary to break them down in any way they could, and they resorted to the arguments to which I have alluded for that ])urpose. Q. 1 will ask you if it is not a fiict that the organization of the Re- publican party was principally maintained by the revenue ofticers ; that they attended public ineetings, went as delegates to conventions, and contributed to bear the expenses of the party machinery, and all that? — A. T do not think it was chielly sui)ported by them; 1 think that the revenue officers, considering their numbers, were very active supporters of the party and contributed liberally of their means; bnt I do not think the Eepublican organization was chiefly supported by them. Q. Was not Dr. Mott for a considerable while the chairman of the State executive committee of the Republican party? — A. Yes, sir; he was. Q. Of course if he and his officers took an active part in the campaign it was fair for their opponents to fight them? — A. Legitimately. Q. If they fought them legitimately, of course ? — A. Certainly. Q. Did not a great many of the reports that were published in the newspapers and commented upon by speakers from the stump originate from complaints of the revenue officers by Republicans as well as Dem- ocrats ? — A. I do not know about that. The papers and speeches were full of complaints, and T think generally the complaints were from Democratic newsi)ai)ers, and probably from Republicans who were en- gaged in the liquor business; they were not confined to Democrats, and I guess some of the Republicans who were engaged in the liquor business comi)lained also. Q. (,Jf rough treatment on the part of the officers ? — A. Yes, sir ; I suppose if they caught a Reijublican at a still, he would complain as loud as a Democrat. Q. A little louder, would he not, as he would think he should have some favor at the hands of his partv friends? — A. I do not know about that. Q. What do you know about the system of political assessment ou the revenue men down there? — A. Nothing whatever ; I have heard that the revenue officers contributed, but 1 never was connected with any of the committees, and had no knowledge of its details. I know nothing but what is generally stated, but I suppose they have been liberal con- tributors. G. B. Eyeeitt sworn and examined. By Mr. Pool: Question. Where do you reside? — Answer. In Winston, Forsyth Countv, North Carolina. 196 COLLECTION OF INTERNAL REVENUE IN Q. Are you a collector of internal revenue if — A. Yes, sir; of the fifth North. Carolina district. Q. And adjoiuing the sixth district ? — A. Yes, sir. Q. Are you acquainted with the sixth district ? — A. Yes, sir; I have addressed meetings in the counties of Y^adkin and Rowan, and have been through there several times. Q. As a political canvasser? — A. I went through the district almost entirely' in 1880, when I was an elector for the State at large on the Gar- field and Arthur ticket. Q. "SYill you state generally the course of politicians and stump speakers in regard to the revenue and the officers ? — A. Well, sir, as has been stated, the burden of the Democratic speeches that I heard in 1876, and all the Democrats that I heard on the stump in 1880, was the revenue law — its oppression and degradation of the people of North Carolina ; the work and bad character of the internal-revenue officers — and at last they i)romised to the people that if the Democratic party was put in ])ossession of the government, that it should be repealed. I will state here, however, that in 1880 tliat ])roniise to repeal the act was not made as often as in 1876, from the fact that it was known to the people that the Democrats had an opportunity to do that in 1878 and 1870 and did not do it. But all the odium of the law and its un- popularity was dwelt ui)on ; such as the seizure of a poor man's distil- lery there, and their wagons, and the turning out of their whisky; the going to peoi)le's houses at midniglit and disturbing the women and children. All these things were dwelt ui)on in very vivid pictures. Q. The officers were denounced ? — A. The English language was about exhausted in that way. Q. What was the character of the denunciations? — A. As Judge Settle just remarked, they were called " red-legged grasshoppers," " whisky- smellers," "spies," "revenue hirelings," &c. Q. Were they accused of stealing? — A. Certainly they were, sir. The "moiety system" in 1868 gave rise to many of these charges. By that system the revenue officials were allowers of blockade distillers to inform on them and then di- vide their pay in that way, by seizing the ])roperty and selling it. Q. And the residt of it all has been that these slanders were put abroad on the community? — A. Certainly; from 1808 to 1870 it did a great deal of harm in that State, but now the charges are fully under- stood, as I said just now. The internal-revenue law not having been repealed up to date, it is easier to execute the law than it was twelve months ago. Q. I am confining my observations to the sixth district. — A. Yes, sir. Q. Was this calculated to embarrass the officers in the discharge of their duty ? — A. It was very much calculated to do it. 1 should think that the collector of the internal revenue of the sixth district from 1808 to 1876 would have found it diflticult to have gotten — he might have done it — what I mean to say is that men of high and influential char- acter would have been deterred from going into the revenue service on account of the trouble they^ feared they would have to stand. Q. Did Dr. Mott finally succeed in getting a good class of officers ? — A. 1 can only speak now in a general way. I understand that for the last twelve months or two years the district is in a first-class condition.^ and gradually improving. The officers, so far as I have heard, I think are as good as revenue officers generally are. Q. Do you know the standing of Dr. ]Mott in that district and else- where where he is known ? — A. I do. Q. State what itis. — A. He is known, I would say, as an honest, bold, and independent man. His character is as good as that of any geutle- uian or citizen in Western North Carolina. Q. Have tliese reports and slanders ui)on his district affected his char- acter at all ? — A. Not a particle ; I think in the last ninety days it has helped him. That is what I honestly believe. Q. Did you ever hear any charge brought of malfeasance in office on the part of the doctor himself? — A. I never have. Q. Nobody has been bold enough to make the charge against him ? — A. If there has I do not know it. If I have ever heard it, it has escaped luy attention. I may have heard of the general charges against the officers of the district from a political standpoint. I have heard that; but I understood it as a matter of course. Q. Is it generally understood among the people in that district, that those slanders and reports were put forward for political purposes, and are they believed or disbelieved ? — A. These charges were used during' a political canvass more than at any other time. As a matter of course, they are flying around there through the country nearly all the time. But the law was unpopular at that time, and the revenue officers are odious all the time, and it was like fire slumbering; it blazed out again about election time. From 1808 to 1870 and during the year 1876 it had a great deal of influence, but in 1880, as far as I saw, I do not think it had any influence. It might have had some, but not near so much as formerly, and will have less from now on. 198 COLLECTION OF INTERNAL REVENUE IN Cross-cxaiuination. By the Chairman : Q. You refeired to the deuunciatioiis, &.(•., heaped upon the revenue officers in 1S7() : you took a part in that denunciation, did you not? — A. I did not make a speech during" that canvass. Q. Did you not vote for uie for governor? — A. I did; and for Mr. Hayes for President. Q. K^otwitlistanding my calling the revenue officers " red-legged grasshoppers," &c. f — A. I voted for you principally on personal con- siderations, but I did not hear you make any speeches. If I had heard you do so, I am doubtful if 1 should have voted for you. i). You heard that I had made them ? — A. Yes, I saw your speeches. Q. You say you made no speeches yourself? — A. Ko, sir; not a single one. Q. And therefore you did not join in the denunciations of the revenue dejjartment ? — A. No, sir. Q. You say United States witnesses are abused in the courts ? — A. A. Yes, sir, Q. Did you ever hear any oiher witnesses except revenue officers abused in the courts? — A. Oh, yes, sir. Q. You have taken a little hand at that yourself, have you not ? — A. I have done it myself. Q. And you say it did not make any difference whether the jury was blackor wbite, Rei)ublican or Democratic, those appeals and that abuse always had an effect ? — A. It did have great intluence, is my candid opinion. Of course the whisky traffic in Western North Carolina per- meated all societies. Q. Now, Mr. Pool had you to say, speaking of these reports against revenue officers, that they were slanders? Among others, was the rumor of storekeepers dividing their pay with distillers ; do you regard that a slander? — A. Do I regard that as a slander ? Mr. Pool, You are confluing him to the sixth district. The Chairman. I suppose so. — A. (The witness,) I should regard it as a slander upon one of my storekeepers and gangers if I heard of his dividing his pay with a distiller. Q. Would you regard it as a slander on Dr. Mott's storekeepers ? — A. If it were not true. Q. Do you regard all such reports as slanders about the sixth district? — A. If the report is true it is not a slander. If not true, I should judge it is slanderous in its nature. Q. Not whether it is true or not ? — A. No, sir. Q. Did you <'ver hear of a reveinu^ agent by the name of McLecr"? — A. Yes, sir ; I have heanl of him in the last ninety days. Q. Do you know that he has a report here, made to this dei)artment, that he Ix'lieves that tiiere was a systematic division between the store- keejters and distillers of the sixth district? — A. No, sir. Q. J lave you never seen that report'^ — A. No, sir; I never saw nor heard of it. Q, Vou ne\«'r heard any sucii report on Dr. IMott's district ? — A. Only during the political canvass around tiie country. Q. Did yon ever In-ai' a leport of one A. M. Crane's, upon which Dr. Mott was onsfed from ollict! '^ — A. I never heard of (liat, excejjt the other day in the Keslh-r and l^amsay in\estiga(ion. This took i)lacc in lH7li, and Dr, Mott, who was removed i>y Presi. Is Dr. Mott on your otticial bond ! — A. Yes, sir. (}. How much did he justify for o]i that bond f — A. I think he justi- iied for *o,j,OUO. Q. Who else is on your bond, if you can remember ? — A. I think I can state them all. Dr. Mott, Colonel Cooper Q. Thomas X. ? — A. Yes, sir. J. A. McCauley, and others. I have a. justified bond of $300,000. I was only required to give $200,000. Q. ^Yllat do you know on this subject of political assessments? — A. I do not know one thing. j\Iy experience is brief. Q. Do you not know how nuu'li was raised by contributions upon the revenue oflflcers of iSlorth Carolina in 1880? — A. Xo, sir; I cannot tell you. I have no idea. Q. Do you raise them regularly in your department? — A. I have not raised one penny so far. Q. Have you been requested by the national executive committee to levy contributions? — A. No, sir; I have niot. 1 have received a card from Mr. Hubbell that he Avould be pleased to receive a contribution, and I shall send it on in a few days. 1 do not know what my other men have received. Q. Did Mr. Hubbell ask you to communicate with all your officers? — A. No, sir; he has not said one word to me on that subject, directlj' or i n di recti V. Q. AYho is chairman, now, of the executive committee of the Repub- lican partv in Is'orth Carolina? — A. Dr. Mott, I think, was elected in July, 1880. Q. Did you attend the Chicago convention in 1880? — A. No, sir; I did not go there. (^ Were you not a delegate? — A. No, sir; I was not a delegate to any convention in 1880. Y"es, sir; I was a delegate to the Republican State convention. Q. Were you not an officer then ? — A. No, sir. Q. You Avere not collector then? — A. No, sii'; 1 have attended no <'on\'ention at all sim-e I have been a collector. Q. Vou know nothing of the oi)eration of attairs in the sixth district now, do you? — A. No, sir. IJy iMr. Pool : (}. Vou were asked regar«ling the rejiorts of some revenue agents. — A. Mr. McLeer, Senator Yancc asked ma about. (^, These were agents sent out by the (lei)artnient? — A. Ry the de- partment al Washington. i). Do not llicsc agents report everything they lu'ar — all rumors, and everything of that kind that thev can scrape \i\)t — A. Tiiat has been my «'.xperienee (tf them. Q. Do they rejtoit things j'egaient sent out by the department here at \Vasliin,i,^ton is extremely exact, ]>nnctilions, and technical, much more so than 1 would be in a rei)ort on my ofticers; they report things that I would not report. Q. Do not they hunt up and scrape nj) every thin<;' that they can, from liearsay and otherwise? — A. I have had a little experience in the mat- ter in the last thirty days in the counties of Person and Alamance, in that State. There have been six revenue ajients makinjLi' a circuit of my distilleries down there. One aj^ent would go to a distilkuy, exam- ine it, and find a stop-cock out of ])lace, or a ])i|)e not painted, and the next week another one would come to the same distillery, and would find some other irregularity, sometechni(;ality. Tlie next would conuMU lik(i man- ner, and just before I came to Washington, in the last thirty or forty days, six of them had been around there. That is the way they rake and scrape everything np. Q. Does it not seem to be their object to make their reports as large as possible, so as to make capital for themselves 1 — A. As a matter of course, if they did not do much work they would not get the $120,000 that is appropriated to keep them going, and they therefore do all the work they i)0ssib]y can do in order to keep in favor with the authorities at Washington. Q. Do they not scrape up every floating rumor, and every slanderous charge ? — A. They iiivestigate everything, in the hope of discovering some violation of law. Q. And they put it in their reports, that come uj) here ? — A. Yes, sir. Q. You say Dr. Mott was removed by General Grant upon the re- l)orts of these officers f — A. That is what I hear since I came here. Q. But upon an investigation of the correctness of these reports he was restored ? — A. That is what I understand relative to this Kestler and Ham say matter. Q. If you go into the office of the Commissioner of Internal Revenue, and examine the reports of these agents, how much reliance would you put upon them ? — A. Unless f knew an agent personally, aud have some official experience and intercourse with him, I should not put any, or very little. Q. This is because of your knowledge of their reporting things whether they are true or false ? — A. Just as I say. The knowledge of their raking and scraping uj) every technical violation of the law, and hunting up every thing. Dr. Mott. They give hearsay, and anything they get about the coun- try from anybody, and put it down and send it on here. The Witness. They have their private informers in my district. They have them about these distilleries to see if there is any violation of the law. I am very free to confess that they do more than anybody else to make the revenue law uni)opular in the South. By Mr. Pool : Q. The chairman asked you if recjuests were made by the collector upon such subordinate officers, that were entirely in his power, to make contributions, and the contributions having been made, whether you consider it voluntary. I will ask you what subordinate officers are en- tirely in his power. Are the storekeepers and gaugers in his power? — A. No, sir ; they cannot be punished by the collector, or removed by him. Q. Do you know of any officers that are in his power? — A. I do not think there is one entirely in his power. The regulations say the col- 202 COLLECTION OF INTERNAL EEVENUE IN lector shall not remove one of his deputies without giving? good reasous to the luterual Revenue Commissioner for doing so. By Senator Mitchell : Q. The selection of deputies is in his power? — A. Yes, sir, when they first come in ; but he cannot remove them himself without writing to the Commissioner and giving his reasons therefor. By Mr. Pool : Q. You said contributions for political purjioses by these officers were voluntary- ? — A. I did, sir. I regard one of my deputy collectors just as much of a gentleman as I am, and entitled to do with his pay what he l)leases. I certainly would be transgressing my ideas of propriety as a gentleman if I should tell him what I wanted him to do or did not want him to do about it. Q. Y'^ou say you have not received any request from any party to make assessments on your deputies ? — A. No, sir ; not one. Q. The letter that you received from Mr. Hubbell was as to a personal contribution by yourself! — A. A personal letter to me, simply stating that he would be glad to receive from me a contribution. By the Chairman : Q. Y"ou say the collector cannot remove a storekeeper and ganger? — A. No, sir. Q. He can give him work as he pleases? — A. Yes, sir. Q. So he would stand with his commission in his pocket without any- thing to do ? — A. The collector can keep from assigning him to duty. Q. That puts him somewhat in the collector's power as to his i)ay, does it not ? — A. To a certain extent it does ; but it does not entirely, because sometimes the collector may be forced to assign him to duty because he cannot get new ones appointed. Q. And he can remove his deputies on representing to the Commis- sioner sutticient cause for doing so ? — A. Y^es, sir ; that is my interpre- tation of the regulations. (.). When you were describing these revenue agents, you said you would not i)ut a bit of dependence in what they said unless you knew them personally ? — A. I said I would not put much, on account of the technical character of their reports. Q. A nd that they raked and scraped around, inquiring into everything techni(;al, &c., and would jump on a man if the pipes of his still — A. \\'ere not i)aint('d, and the stojvcocks out of order, &c. Q. Is that not very much the lim^. 1 followed in 1876, when I talked about the hardship the people had to endure from them f — A. Yes, sir; but yon did not contine your ri^narks to the revenue agents; you at- tacked the system from the highest to the lowc^st. Q. I ask you a gencnal (piestion, if there was not a general feeling in the countiy. I ask for the facts, if it was not so — a general feeling among the ])eoi)Ie of our country that the revenue officers were oppress- ive to llic ix'oj)]*', and carried things with a high hand ; that th(\v would jump on a fellow and lu'caU iiini all up for a slight and trivial cause? — A. Tlicrc wasa feeling of that (character, but it was not m hat I would call an oiigin;il fei^ling. It was what I would call a feeling introduced and riiltivaled hy polilicji! speakers on tlu"! stiini]). if the peo]>le had been aoyou notlhiiik thiscriticism of theirconduct,thiscontinual watch- THE SIXTH DISTRICT OF NORTH CAROLINA. 203 ing, had a tendency to keep them within bounds, and make them behave, as they saw they were watched very closely? — A. As f said, the great trouble Avas chieU^^ there during the political canvasses, and they were not watched and talked about much when it was going on. Q. Was it not charged that they would go around and make raids more often just before election time? — A. That is what the Democratic speakers charged. The rule, I think, \vasthe very reverse. Just before an election raids were not made, in order not to stir u|) strife. Q. Was it not charged that the marshals wouhl fill their pockets with blank warrants, and when they came across a man whom they thought ought to be arrested they would take one of them out and juit his name in it! — A. Under the Douglass dynasty that was said in tlie campaign speeches. Q. Did you know whether there was any foundation for that or not ? A. I do not think there was any foundation for that charge — about their going around, especially before an election. Q. Was it not charged that if a Republican fell into the hands of the revenue officers he got off a heap easier than a Democrat '? — A. That might have been said ; I think it was said. Q. Was it not charged that a great many Democrats accused of vio- lating the law fell into the hands of the Republicans, compromised by changing their politics and paying the costs f — A. Yes, sir. Q. Did you know any instances where that was charged? — A. Not of my own personal knowledge. I do not know of any man who changed his politics in that way. Q. You have heard of cases where that was alleged ' to have been done ? — A. 1 think I heard the general allegation. By Mr. Pool : Q. In regard to assigning storekeepers and gangers, was it not the custom to keep just as many storekeepers and gangers as there were distilleries in the district ? — A. I said while the collector had the assign- ment of the storekeeper and ganger in his hands, and could give him work or not, as he wanted, frequently he was compelled to do it on ac- count of not having enough storekeepers and gangers to do the work ; that the collector had generally as many storekeepers and gangers as he had distilleries in operation ; and sometimes a collector might not want to give a storekeeper and ganger work, but had to do it, as he has BO other man to give it to. That is my experience. Q. Were they in the collector's power to any serious extent ? — A. I take it u]) one way and down the other, and cannot say to any serious extent. The collector might embarrass him — keep him out of work twenty or thirty days ; but in the course of time, if the distilleries re- mained in operation, he would have to give him work. Q. If all the distilleries were running he would be obliged to give them all work ? — A. Certainly he would have to do it. I have had to give work to men that I did not want to give work to. D. A. Ramsay sworn and examined. By Mr. Pool : Question. Where do you reside '? — Answer. Salisbury, X. C. Q. What is your occupation ! — A. Storekeeper and ganger. Q. In the testimony of Mr. Kestler, he stated that he knew one reve- nue oflflcer who said he was compelled to pay an assessment, and men- tioned your name as the one. Will you state whether yon were ever 204 COLLECTION OF INTERNAL REVENUE IN compelled to pay an assessment for political purposes or not? — A. I never have been ; I never so stated to Mr. Kestler, nor to any one else. I never liave received any notice except here recently from Mr. Ilubbell, and that was just before I came on to AVashington City. 1 have given assessments and have paid them, but never have been forced to do such, a thing in my life, and never so stated to Mr, Kestler. Q. AVas every contribution yon ever made for paity purposes entirely voluntary ? — A. It always has been. 1 consider it a matter of business and principle to do so. Q. ])o you know Mr. Kestler? — A. William H. t Q. Yes, sir. — A. I have known Mr. Kestler ever since 1871, '72, or '7.3,. along there. Q. You reside in the same town Avhere he does, do you ? — A. He does now, but did not some time ago. He left there for about a year, but came back last year. Q Do you know his character ? — A. I think I know his character tol- erably well. Q. You know the estimate in which he is held in the community in which he resides? — A. Yes, sir. (). Please state it.— A. Mr. Kestler is a barkeeper — keeps a bar-room — there in Salisbury. 1 have never heard anything against his truthful- ness and veracity as a man ; but he has no standing socially in the town at all, neither he nor his family. Q. Is he a man of bad repute in the community in which he lives? — A. He is considered a man of loose habits; morally, his habits are not good. I don't know how to answer the question hardly. I never heard iiis truthfulness, or anything like that, ever brought into question. Q. Is he held in lespect in that community? — A. I do not think he is, sir. Cross-examination by the Chairman : Q. So far as you know, Mr. Kestler's character for truthfulness is good ? — A. So far as I know. Q. Being a barkeeper, he has no social position? — A. No social posi- tion. (}. You say you look upon this pajiug assessments as a matter of business? — A. A matter of business and a matter of principle. Q. You were holding office at the hands of the government and were call(Ml ui)on to contril)ute something towards the sup])()rt of the ])arty ? — A. I was not called upon. I gave it of my own free will and accord, withcMit ever having been solicited, and never received any intimation. (}. How did you come to do it? — A. I have held a government ofiice for a long lime, and always made contributions, but just ])rior to the i'Uiction in isso I liad a conversation with Dr. Mott, who was then collec- t<»r of 11m; district, and Avho expected to be chairman of the Kepublican State committe*'. I believe he was on his way then to Raleigh, and as we were sjK'akingof the prospects of the party in the State and all that,, anat, out of his own mouth. Q. Who was that? — A. Allen Ramsay, a storekeeper. A cousin of John A. 's, I think. The Chairman. He did not use the word "compelled'' to pay the assessments. J. M. Gray sworn and examined. By Mr. Pool : Question. AA^liere do you reside ? — Answer. Statesville. Q. are you conue(;ted with the revenue service? — A. I am not now. 1 was until about four or five months ago. Q. How long were you connected with it? — A. Since October, 1873. (^. Do you know the general character of the officers connected with the service around your section f — A. Yes, sir; I think I do. Q. Especially in Davie County ; that is your native county ? — A. Yes, sir. Q. Will you state what their cliaracter is? — A. Their character, I tliink, is good — generally of the officers of Davie County. (}. Arc they as respectal)le as any men in the county? — A. [ think so. i). Yon have heard rcpnrfs (tithe slanders made against the levenue ollicris (»r your dislrict. Iia\(* you not? — A. Yes. sir; 1 have heard tliciri. (}. Do yon kiioM- wlicllier tlici'e was any truth in any (»f them t — A. I do not know that llicrc is any trulii in tliem of my own knowh^dge. (}. Do you know of any instance ol' tlieir dividing pay with the dis- tillers ? — A. I do not, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 20 T Q. Of course you have heard reports of that kind? — A. Yes, sir: I have heard reports of that kind. Q. You have been assigned to a good many different distilleries? — A. Yes, sir; T have been to a good many in Uavie County, some in Yad- kin, and some in Iredell. Q. Have yon any knowledge of any storekeeper dividing with the distiller ? — A. 2^one in the w(n'ld. i). Did you ever divide, yourself, with a distiller ? — A. Never have. Q. Ever approached for the purpose of being induced to do it ? — A. Xever have been. Q. Is the service in that district improved? — A. Yes, sir; I think there has been a geat deal of improvement since I went into the serv- ice — a decided improvement. When 1 first went in a gotMl many looked upon revenue ofticers as if they were not very resi)ectable; that is, by a certain class of people. Q. Has the general state of public feeling improved in rej^ard to the revenue ? — A. Yes, sir. Cross examination. By the Chatr:man : Q. You swear that all the otticers that live in Davie County were men of good character? — A. Yes, sir; good character so far as I know. Q. Did you ever hear anything against any of them at all f — A. No, sir; I do not think I heard any one of them singled out. Q. You never heard of any officer in Davie County against whom one thing was charged ? — A. No, sir. Q. Past or ju-esent ? — A. I may have heard through the newspapers, or something that way. Q. Where was Lanier's distillery? — A. That was in Davie. Q. Was not Mr. Heilig discharged from there for improper conduct? — A. I do not know. I heard he was. Q. Then you heard something against one revenue officer? — A. I think you asked me of Davie County. Q. I did. You say Lanier's distillery is in Davie County ? — A. In Rowan County now. Q. Yon said Davie Count}' ? — A. Yes, sir. By Mr. Pool : Q. How many distilleries are there in Davie County? — A. There are a good many; I suppose between 40 and 50. Q. Do you know W. M. Walker? — A. Yes, sir. Q. State the character, if you know it, that he sustains in that com- munity where he lives. — A. I think his character is good. Q. You have heard him spoken of frequently by other people ? — A. I do not know that I have heard it trequently. Q. How long have you known him ? — A. For a good many years; I do not remember exactly how long; ten or twelve years — probably longer. Q. During that time you have known people with whom he has as- sociated in the community in which he lives? — A. Yes, sir. Q. And they say his character is good? — A. Yes, sir; his character is good. Q. How long were you in the service t — A. I went in in October,. 1873, and I have been in since that time up to six months ago. By the Chairman : Q. Were you about Statesville much? — A. I have been about there 208 COLLECTION OF INTERNAL REVENUE IN for the last six inoiitlis. My fanuly have been living- there for three years. Q. Does Walker sell liquor and beer there! — A. No, sir; I do not think he does now. Q. ^Yhen did he quit it ? — A. 1 do not know that h«' really did sell there. I heard some say he did, and others that he was not connected with it. I cannot say that he sold any at all. Q. You heard it said that he was interested in a saloon there? — A. Interested in a beer saloon ; yes, sir. The following witnesses were called for the government : J. F. Hellen sworu and examined : By the Chairman : Question. Where do yon reside ? — Answer. Winston, X. C Q. Are you now connected with the internal-revenue service ? — A. I am not, sir. Q. Have you been ? — A. I was up to about a year ago. Q. How long were you in the revenue I — A. About three years. Q. In what capacity f — A. I had charge of the " Bonded spirits ac- count " in the collector's oftice of the tifth district. Q. In that capacity there, did you acquaint yourself thoroughly with the workings of the system f — A. I think I did. I endeavored to do so. Q. 1 want to get some information from you in relation to the duties, &c., of general storekeepers. Will you describe what their duties are ? — A. The duty of the general storekeeper is to have charge of a warehouse containing spirits, where the distillery has suspended. He may be in charge of one or more of these bonded warehouses. Q. What do you mean by being in charge of a bonded warehouse; he does not stay there all the time ? — A. Not unless the wareliouse con- tains over two thousand gallons of spirits, then his duty is to remain at the- warehouse constantly. Otherwise, where the quantity is less than that, he should visit the warehouse once a month; and it is his duty to go there and put the stamps on the whisky when tax paid, and deliver it to the owner. Q. If the owner wants to withdraw it from bond ? — A. Yes, sir. Q. Who carries the keys of that house ? — A. The general store- keeper. Q. And no one can enter it without his permission ? — A. No one can enter a waiehouse under his charge without his permission. i). Can any one else go and discharge these duties for him, of withdraw- ing, stamping, and tax paying licjuor ? — A. He cannot designate a man to go to one of these warehouses and withdraw the spirits, but the col- lector can desiginiti' any other general ster to do that in case of emergency ; or if the storekee]>er who had it in charge was not pres- ent, or away on other duty, and it was necessary, in order to deliver the spirits to the distiller or owner, to have it done at once. Q, Now, for instan<;e, if a distiller wanted to withdraw a barrel of whisky from bond, when he was under suspension, could the general storekee])er tell some other storekeeper and ganger to go and do that for him t \\(»iild that be lawful? — A. 1 think not. (f. Who would ha\ (^ to do that, himself or sonuA other ))erson specially designated by t he collector to do it '! — A. Some other general storekeeper would ha\e. to be designated by the collector. (f. According to the laws and regidations, can a de[>Uiy collector act THE SIXTH DISTRICT OF NORTH CAROLIXA. 209 as j4iiii<;oi', and receive pay Jbr botli oftices at tlie same time? — A. Xo, sii-; a tlepiity collector cannot bold two otbces at the same time. (^. It was said in excnse for a nmn who di-ew ])ay as deputy collector and ganger, that it was done in the fourth district; have you any knowl- edge of any such system in the fifth district ; was such a thing done in that district while you were connected with it? — A. Not that I know of. Q. How are the deputy collectors, special deputies, gangers, store- keepers, general storekeepers and all subordinate oflicers, i)aid ? — A. They are paid per diem, on an account made out at the end of the month. The storekeepers and gangers and the general storekeei)ers are ])aid for the number of days they are employed by the collector. The dei)uty colletor is paid by the month. Q. Is that i)ayment in cash or by a check ? — A. It is the custom now to pay them Avith a check. Each oifl(;er receives his check covering a month's payment at the end of the month, or as soon after as con- venient. Q. What bank is that check upon ? — A. In our district it is on the depository — the First Xational Bank at Winston is designated a United States depository ; before that occurred I think we did business with liichmond. Q. Have they any depository in Raleigh or Charlotte ? — A. 1 do not know, sir. Q. What does the collector do with the money — when he receives it ? — A. For taxes ! Q. Yes ? — A. The money he receives for taxes is required by law to deposit in the depository each night; or at least when we had the de- pository in Eichmond we had to put it in transit, and get a receipt for it that night. Q. You start it to the depository that same night ? — A. We start it. Q. The collector has no authority to keep money on hand to disburse, even for necessary purposes? — A. No, sir. Q. The money has to go to the United States depository, wherever it is, in that district ? — A. Yes, sir. Q. All moneys have to be paid out in checks on the depositor}^, and not in cash? — A. The money which the collector disburses, is not the money which he receives for taxes; that is put in the depositor3\ The money Avhich he disburses is sent to him by check from the Treasury Department, which goes to the depository, and is drawn upon for sala- ries, &c. ; it is a separate and distinct transaction entirely. Q. Did yon know anything about the system of political assessments in the sixth district ? — A. I know very little about it. I know men who have been asked to contribute to the cause, and have contributed. Mr. Pool. Are you speaking about the fifth ? — A. I am speaking about the fifth, not the sixth ; I don't know anything- about it. By the Chairman : Q. Did you know anything about the alleged practice of storekeepers dividing tlieir pay with distillers ? — A. No, sir ; I have heard those ru- mors, but I do not know anything about it — not a thing:. Q. You have heard rumors of that kind ? — A. I have heard rumors, yes, sir. I do not suppose there is anybody in the western part of the State but what has. Q. I will ask you if there has beeu an improvement in the revenue department, and in the feeling of the people towards it, and if illicit dis- tilleries have become less, and frauds on the government have been di- minished in that part of North Carolina ! — A. Blockading has diminished S. Mis. IIG 14 210 COLLECTION OF INTERNAL REVENUE IN very iiiateiially since I went tliere, four years ago, and I think the feel- ing also Las improved. Q, Wliat do you attribute tliat to ? — A. I think you can attribute it to the better understanding of the law, and also to better management, l)ossil)ly, on the part of the officers. I think a good deal can be attrib- uted to better management on the part of the officers. They are learn- ing constantly. Q. Has the character of the officers improved latelj" ? Is there a bet- ter class of men in the service ? — A. I think as long as I was in the service the class of officers was improving. 1 have not known much about it since. Q. Did the action of the Federal courts, granting amnesty to those who confessed their sins and took out licenses, have an effect to diminish illicit distilling ? — A. I only get that from report. I am not familiar enough with the question at that time to make such a decision myself as to it. I think it liad very little effect. I do not think it amounted to much. Q. I am not speaking of the sixth district, I am speaking generally. — A. I am speaking generally. Of course, all the information I have was from the tiftli district. Q. What was the percentage of the cost of collection in the fifth dis- trict when you were connected with it ? — A. 1 think it was in the neigh- borhood of 3^ per cent., possibly. Q. Do you know what it was in the sixth district ? — A. No, sir. Q. According to the rei)orts of the Commissioner of Internal Revenue it was 54 per cent. — A. I had never noticed that until the progress of this investigation. Q. I will ask you if you have sufficient knowledge to state if the sixth district is a worse one to manage than the fifth ? — A. I have not any knowledge; nothing to guide me in that; my impression is, as it stretches over a larger territory, of course, it is more difficult to manage; and it is a more mountainous region than that of the fifth, and more ()l)l)ortuniti('S present themselves for blockading. i). In that it is a mountainous region, and covers a larger space of territory, it is a more difficult region to manage than the fifth f — A. Yes, sir, Q. ilow is it in the character of the population? — A. I think the character of the poi^ulation is similar, though I have never been over only a small portion of the sixth district ; but I think the class of people is about the same. Q. Are you a native of that country ? — A. Yes, sir; born and raised in that State. Q. What county ? — A. I was born in Carteret County, and raised in Craven. Q. J low long have you been a resident in the part of the State in which you now live ? — A. Four years next September. ( ross-cxamined by Mr. Pof)L: (). How long were you connected with the revenue service ? — A. About three years. Q. (N)mm<;ncing when ? — A. S(!pteMd)er, 1878, I think. i}. You said that under the law a storekeeper cannot also be a de|»uty ? — A. That was my und(;rstanding of it. i). Is it not a regulation instead of a law? — A. Is it not a regula- tion '! THE SIXTH DLSTRICT OF NORTH CAROLINA. 211 {}. Yes; a d('i>aitineiit regulation ? — A. Yes, sir; it is a regulation I refer to. Q. You (lid not mean that it is a statute ? — A. Xo, sir. i^. Do you know when that regulation was made? — xV. I do not. Q. Do you know what the regulations were on that subject in 1872-'73, and along there f — A. 1 had nothing to do with the revenue service at that time, and in my studies never took that question up. Dr. MoTT. In regard to the duties of general storekeepers, do you know they have divisions ? The Witness. Yes, sir. Dr. MoTT. A certain number of distilleries to attend to, and that fre- •quently they are scattered over a considerable extent of country — some- times several counties. A storekeeper would probably have a call to take out whisky at two or three points at the same time in his division. Did you know that these whisky men always want to sell directl}' on an order ? The Witness. Y^es, sir. ])r. MoTT. And that it would be a great hardship for them if they had to wait from time to time for the storekeeper to visit the difterent sections, and probabh' lose a transaction in their business through that waiting ? The W^iTNESS. Y^es, sir. I said in answering the question before that I considered it was the privilege of the collector to designate a party to go and attend to a case of that kind. I do not think a general store- keeper himself has a right to designate any one. Mr. MoTT. I want to make it appear why it would be necessary for the general storekeeper, in that condition of things, to send some one €lse in his place. The Witness. I know it is frequently done. They have to go to other than their own warehouses. Dr. MoTT. And it is done for the accommodation of the distillers ? The Witness. Y^es, sir. By Mr. Pool : Q. Can he not designate another one to go, with the consent of the collector? — A. Yes, sir; that would be the same as the collector desig- nating him. Q. He could designate one if the collector consented "? — A. Y'es, sir. The Chairman. That would be the collector's designating him. By Mr. Pool : Q. With regard to disbursements, has not the collector a right to keep the money that is given to him for the purpose of paying his offi- cers wherever he pleases and disburse it from wherever he pleases ? — A. I cannot say that I consider that so, from the fact that it has been the custom of the fifth district always to deposit the check we received from the Secretary of the Treasury in the depository. Q. You do not know of any regulation requiring that to be done ? — A. I cannot recollect any regulation ; no, sir. Q. Has not the disbursing officer the right to pay his money from wliere he pleases under the regulations ? Does he not give his bond for it? — A. Yes, sir; he gives a bond for it, but whether he has a right or not to pay it as he j)leases I cannot say ; I am not well enough acquainted w^ith the regulation in regard to that matter. By the Chairman : Q. The statute gives the force of law to the regulations, which are made to carry out the law, does it not ? — A. I i)resume so. 212 COLLECTION OF INTERNAL KEVEXUE IN T. K. Bruner sworn and exainiued. By the Chairman: Question. Where do you reside ? — Answer. Salisbnry, ^N". C Q. Have you been at any time connected with the internal-revenue service in North Carolina? — A. Yes, sir. Q. From when, to when? — A. I was appointed division deputy to take effect trom August 1, 1878 ; I acted as division deputy until Janu- ary 1, 1879, at which time I was appointed a storekeeper and gauger. Q. Where were you first assigned as storekeeper and ganger? — A. At John AV. Miller's, in Eowan County. Q. How long did you stay at his distillery ? — A. 1 think about a month and a half; some time about the niiddle of February I left his place. Q. Why did you leave ? — A. Well, sir, there was considerable trouble between him and myself in regard to the business. He found he was falling back and desired to catch up, and wauted me to allow the mashing of more meal than the law allowed him to use. Q. Just explain all that took place between you. — A. It is quite a little story. He had been after me for sometime ; I had been refusing, and finally one day he broke out with very violent exclamations, and said he would turn out all the beer in the distillery if I did not allow him to do it. Q. Did you allow him to do it? — A. I have forgotten the number of bushels in the mash that he wanted to put in to catch up. Q. The law did not allow him to do that ? — A. No, sir; the law did not allow it; he wanted to do it without my reporting him. I refused to allow him to do so, and he refused to mash any further. He abused me a good deal at his house that evening, and in fact run me off" about sundown. Q. Did he suspend ? — A. He did ; yes, sir. I boarded at another man's liouse for the four days following to finish out what was in his distillery, and he sus])ended. i}. How long did he stay suspended ? — A. I don't think he ever ran again. Another Miller bought his interest. I told Dr. Mott most of the circumstances connected with this, and 1 think Miller was cognizant of that fact, and don't think he ever applied for another storekeeper: but there was a change made, and they ran from the time of the new change. Q. What became of you then ? — A. Then I was assigned to Nash's, in Davie County. Q. How long did you stay there? — A. I staid there a month and three days. Q. ^\'lly (lid you leave there? — A. Troubles of the same character forc<'d me awav from there. I was importuned from the first at that j)la. — A. Oh, yes. (}. \Viiat isyour answer ; thatyou made no claims lor pay before that lime — A. Oh, no; I got my j)ay before that time. <^). W'iiat lime did you get your ]>ay ? — A. 1 do not remi'mber. (^. \i)\\ had got your pay before? — A. In what I conceived to be a reasonable time alter tiu^ work- was ])ei foiined. 1 do not exactly re- member how it was. (}. The ainench'd \'oucher is sworn to on tiui 2.">th of August, 1874, ami lliis money was due .lune 30, 1873; that was nearly 14 months alterwards? — A. ^'es, sir. THE SIXTH DISTRICT OF NOKTJI CAROLINA. 217 Q. Now, liow long' after the 3()tli of June, 1873, wa.s it until you got your money? — A. 1 cannot tell you ; I do not remember. Q. Do you remember it was before tbe 2jth of August ? — A. Oli, yes, sir ; before 1874 ? Q. Yes. — A. Yes, sir, Q. If you were paid before that time, you were paid before the voucher was made out? — A. I do not know, sir; I cannot tell you anything about that. (). As you say you do not know that any voucher was ])ut in by Mr. ■Clarke, and the one you did sign to put in was on the -~)th of August, so that if paid before that, so far as you know, you were paid before the voucher '? — A. So far as I know. Q. Your name does not appear on this original voucher ? — A. That is so. Q. ])i. lie stands as high as anybody ? — A. Yes, sir. (}. ilas his character been afCected by these revenue rumors? — A. Well, 1 don't know tiiat it has, es]>ecially with i)ers()ns who had the opporhinity to know something of the service, I do not think the niMiors liavc. injured tin; doctor. Cross-examination by tlie CHAIRMAN: Q. You say you lia\. ^\■hat di. Where , and I think the office was abolished in June or July, 1873. Q. That was in the sixth district ? — A. Y'es, sir. (^. Were you then well acquainted with the people of the sixth dis- trict ? — A. Yes, sir. Q. And you resided in Salisbury at tlie time ? — A. I was well ac- •fiuainlcd witli the business men of tlie district. ii. Do you know .Mi', Kestler, tlie witness that has been here? — A. Y'es, sir. (^). How h)ng ha\c you known him ? — A. AVhen I first knew Kestler Jie wasliN'ing in Concord, in 1801). He afterwards removed to Salisbury. I foi-gct; what year he removed to Salisl)ury, perha])s 1871 ; somewhere iihdig lliere. (). Have you ficciuenlly lieeu in Salisbury since tliattime? — A. I have remained in Salisbury ueaily every i' iiiadc (o any (ildciT oi- clt'ik by ic-aHiMi of fill- (liHcliaifif of dnticN wliicli hclonj; to any otlicr ollicer or clerk in the haiii«! or any other in is, "Act of June 20, 1874, "19th Statute." Mr. Pool. The hiw was passed after the time spoken of. The Witness. It was done under the act of June 20, 1808. Mr. Pool. I su])j)ose the law was passed to break up the regulations of the department previous to that time. The Witness. The office was governed by the regulations, L think. Kegulation 5, No. 7, 1870. The Clerk. The original act was August 20, 1842, and that act was brought forward. By the Chairman : Q. You have given testimony tending to take away the character of a feeble, one-armed ex-soldier, Mr. Kestler. You of course, then, can have no objection to answering some questions about your own charac- ter. I will ask you if your own character has not been considered very bad in North Carolina? — A. If you take the newspaper reports, in con- sequence of my being a Republican — take what thej^ say — it would be so. Q. Was there not any cause assigned by the public for calling you a man of bad character other than your Republicanism? — A. Not that 1 know of. Q. Were you not accused and openly charged with stealing a mule? — A. I was accused, and triumphantly vindicated without a scintilla of evidence brought against me. Q. I ask you now if you were not accused of that. I am not asking if you were guilty of it. — A. So I understood it. Q. You were accused of those things "? — A. Yes, sir ; I was. Q. I will also ask you if you were not accused of stealing some law books belonging to Mr. Kittrell I — A. I was not. There was a charge preferred in the supreme court, made by a man through political pre- judice, to the effect that I had taken the books, and after I had thrown down the books in the supreme court before Judge Pearson, the very books which the charge was made upon, the judge said that the man who made the charge ought to be unmantled. It was uot only that charge of stealing, but the charge was that after having stolen the books, I had erased the name of Kittrell on them, and written my own name in its place, which was false. Q. I did not ask you about the falsity of it.— A. When I produced the law books in the supreme court, when I was making application to be adnntted to the bar — the books were " Williams on Executors" — there was Kittrell's name on tlie inside of the book and on the outside of it, and my name was not anywh/re on them, and the supreme court at that session licensed me to practice law, after thus vindicating myself from that charge. Q. Still those charges were made in the newspapers against you f — A. They were made by the Democratic newspapers for political pur S. Mis. 110 15 226 COLLECTION OF INTERNAL REVENUE IN X)oses, in consequence of my adhesion and devotion to the Kepublican party. Q, You say you talked with the best men in Salisbury about Mr. Kest- ler, and they all said he was a man of bad character for truth. Will you give me the names of the people that you talked with ? — A. I did not talk to anybody about it. I heard Mr. Black mar say Mr. Kestler was not a man of truth. Q. You heard Mr. Blackma]' ! — A. And John I. Shaver said it also^ Q. How long has Mr. Shaver been dead ? — A. He died, I think, in 1875. That is mj recollection ; I am not positive about it. Q. Is Mr. Kestler not in business there now with men of respectable character ? — A. I do not know who he is in business with. Q. Is he not in business with Mr. Blackmar at the present time? — A.. Mr. Kestler? Q. And Mr. Frercks f — A. If he is, I do uot know it. I understand he has a grocery. Q. Does that show that he is a man of bad character for truth, be- cause he has a grocery ? — A. It does not. Q. Do you think a grocery keeper can tell the truth f — A. Y^es, sir 5. Mr. Snider has been in the business in Salisbury for many years, and he is a good man for truth, a man of good character, recognized by the re- spectable citizens of Salisbury as being a gentleman, and of good char- acter. So is Mr. Mills, who keeps a grocery. Q. You disclaim, then, the idea that a grocery keeper cannot be a man of truth ? — A. Of course I do. Q. Did you never hear anybody" say that Mr. Kestler was a man of truth? — A. No, sir. Q. Were you present yesterday when Mr. Eamsay was sworn ? — A. I was not, sir. Senator Mitchell. I suppose if Mr. Henderson desires to explain anything about this matter, of which he has testified, he can do so ? The Chairman. He can do so if he wishes, further. The Witness. I will explain further in regard to this question you asked me relative to a mule. In 1865 a man by the name of Darr — I was an officer in the Freedman's Bureau at that time — had a difficulty with one of his negroes. I issued a summons and had him brought be- fore me. The negro claimed that he had not been paid tor services he had rendered to Darr, his former master, who refused to paj" him. I restrained some com to pay the negro a reasonable sum for his services. Mr. Darr became furious, and afterwards canie to Lexington to em- ploy a lawyer, so 1 understood. While at Tjexiugton — he lived eight miles from town ; I did not live in Lexington at thiit time — he stayed until after night, and a man by the name of .Jeremiah (Jlover stole Mr. Darr's mule that night, and rod<' it to High Point, arriving with the mule the n<'xt morning about an hour by sun. He ottered to sell the muh' to Mr. .Icrrold. .lei-iohl tohl iiini he did not wish to buy it, and pointed him out to I). M. IIen(h'rson, my brother, wlio was merchandis- ing in liigii Point, lie olfered him to my brother, and sold him the u\[iU'. t'ov «75 in gohl. Tliat was lAlr. I);irr's testimony in court, that the mule was worth ''*f75. Levi 1^]. .lohnson, who was (clerking in my broth- roduce any evidence tending to show anj' complicity in the matter wlmtever, after all the witnesses were examined. Darr was marked prosecutor upon the bill, by the court, from which he appealed. In volume 64 of the supreme court reports of the State of North Carolina will be seen the decision that was rendered, and that the prosecutor Darr paid all the costs, both State's and the defendant's aud the witnesses. The jury was out about one minute ajid came in with a verdict of '' Not guilty." Right here [ will take occasion to state that I was informed by J. V. Summers, who lives in Charlotte, which I have no idea he will deny, or dare deny, aud look at me, that there was no evidence against me, but that they thought niy radical views were such that with the negroes I would rule the whole country, and referred also to the speech I made on the 4th of July, 1865, and that I was bound to be mashed up in some way, and he was one of the jurors. By Senator Mitchell : Q. Which jury? — A. Of the grand jury that found the bill. He lives in Charlotte now. And right there, also, Mr. Summers, who stated to me that there had been no testimony against me, had at that time a bill of indictment against him for living in fornication and adultery with a negro woman. He went and plead guilty, paid costs, and that 228 COLLECTION OF INTERNAL REVENUE IN is ou the records of the court; and I will add here that I do not think there is a respectable man in the State, either Democratic or Reimbli- cau, who has not sympathized with me and tliought 1 was hardly treated — miserably treated. By the Chairman: Q. Is that all the explanation you want to pnt in now about that matter?— A. I believe it is. By Mr. Pool : Q. Was there not an intense feeling of prejudice against the officers of the Freedman's Bureau at that time? — A. Dreadful. Q. Were they not persecuted in every possible way that did not make the man persecuting amenable to law? — A. They were persecuted in every possible and conceivable way that could be done. Q. Did not that prejudice against the officers of the Freedman's Bureau amount absolutely to a state of wild public excitement? — A. In many instances. By the Chairman : Q. What has the Freedman's Bureau to do with it? — A. I was a Freedman's Bureau officer when this mule was stolen by Glover. By Mr. Pool : Q. You were saying you were prosecuting this man Darr to make him pay what was due to his former slave at the time this thing oc- cured ? — A. Yes, sir. Q. He was detained and lost his mule in town ? — A. Not that night. He came up to Lexington to employ a lawyer to defend him, and that night he came into my office, and staled that his mule was gone. The mule had been stolen by this man Glover, who was whipped at Winston. Q. You say you were nominated for Congress ? — A. Yes, sir. Q, Were jou denounced upon the stump for this matter ? — A. Was I denounced ? Q. Yes, sir; by your opponents ? — A. No, sir; not by my opponents, but in the community by the bitter element of the Democratic party. They denounced me everywhere. Q. Have you continued to be denounced for this matter ? — A. Yes, sir; hounded down and persecuted dreadfully for years and years. I have seen Governor Vance check it on one occasion in Salisbury. Q. Check the denunciations ngjdnst you? — A. Yes, sir. (^. And that was after you had been acquitted? — A. After I had bet'u acquitted i^. Kegarding these books, what was the date of that? — A. 1866 or 1867, 1 think. C^. And a year or two afterwar. What (h) you mean by being unfrocked ? — A. His license taken from liim. Adjourned until 10 a. m. Monday, July 10, 1882. Washington, D. C, July 10, 1882. The committee met at 10 a. m. William F. Henderson, was allowed to file, as a part of his testi- nmny, the following report of case and decision of the supreme court of the State of North Carolina (volume 63, page 516, N. C. Reports) : State v. Henry C. Darr. The prosecutor upon au indic(ment for stealing a nuile, found at fall terra 1807, and tried at spring term 1869, may upon proper certiticate by the .judge below be ordered by him to pay the costs of the case. State V. Lumbrick, 1 Car., L. R., 543, and State v. Luptou, atthis term', cited and ap]>roved. Order to pay costs made by Cloud, J., at spring term 1869 of the su])erior court of Forsyth. The defendant was indorsed as prosecutor on a bill of indictment for larceny of a mule, found at fall term 1867. On the trial there was a verdict of "not guilty," and the prisoner was discharged. After- ward his honor, the judge presiding, having certified that there was not reasonable ground for the prosecution, and that it was not required by the public interest, but was frivolous and malicious, on motion, it was ordered that the prosecutor, Fleury C. Darr, pay all costs of the cause, to be taxed by the clerk, including all the witnesses sworn for the de- fendants, as the judge certified that all of them were necessary wit- nesses. From this order Darr appealed. Phillips & Merrimon, for the appellant. Attorney- General, contra. Eeade, J. The oft'ence charged, larceny, was one "of an inferior na- ture" within the meaning of the statute, Rev. Code, ch. 35, sec. 37, which authorizes the court to make the prosecutor pay the costs where the defendant is acquitted, aud the prosecution " appears to be frivolous or malicious." (State v. Lumbrick, 1 Car., L. R., 543.) It appeared to his honor that "tliere was not reasonable ground for the prosecution, and that it was not required by the public interest, and was 'frivolous and malicious.'" If, then, the case were governed by the law as it stood when the offence was charged to have been com- mitted, or when the indictment was found, as was contended for by the prosecutor, he might properly be made to pay the costs. But the 230 COLLECTION OF INTEUNAL REVENUE IN case falls under the ('. C. P., § 560, which was in force at the time of the trial and which provides that in any criminal action, for whatever grade of offence, the prosecutor, if one is marked on the bill, may be ordered to pay costs, " when the judge shall certify that there was not reasonable ground for the prosecution, and that it was not required by the public interest." (State v. Lumpton,at this term.) It was therefore jjroper in this case to make the defendant, who was the prosecutor in the case in which the order was made, pay the costs. There was no error in the judgement appealed from. This will be certified, &c. Per Curiam. Judgement affirmed. The following witness was called in behalf of Dr. Mott. W. J. CoiTE, sworn and examined. By Mr. Pool : Question. Where do you reside ? — Answer. Statesville, North Caro- lina. Q. What is your occupation ? — A. I am deputy collector of internal revenue. Q. How long have you been in the revenue service 1 — A. As deputy collector since March, 1875. Previous to that time as a clerk in the Internal Eevenue Bureau for three or four years in this city. Q. You mean in the Commissioner's office ? — A. The Commissioner's oflfice ; yes, sir. Q. Are you generally occupied around the office of the collector in Statesville ? — A. Altogether. Q. I want you to state in the first place whether ^ill the monej' that is collected is sent here, and how the expenses are paid afterwards ? — A. All the money that is collected is sent to Washington through the jtublic depository — the Raleigh National Bank — and the expenses are paid by check sent from the Commissioner's office to the collector. The two things are totally different. Q. Those checks are sent upon the basis of an allowarice made at the beginning of the fiscal year? — A. Yes, sir ; and upon the request of the collector. Q. For the current month an estimate is made by him of what will be needed to pay the officers on duty, based upon the allowance bj^the Commissioner. But that request is based upon an allowance that is made by the bureau at the beginning of the fiscal year ? — A. Yes, sir. Q. It has been (iharged in tlie newspapers, and otherwise, that the revenue ollicers of the sixth distri(;t have been in the iiabit of collecting revenue and keejung as much as they wanted tluMiiselves, and sending as much as they pleased to the Covernment of the United States'? — A. That is not so, and could not be so, as it is contrary to law. Q. Fi'om your statement, now that could not be done to the amount of a single dollar ? — A. No, sii" ; not to the anu^unt of a single cent. Q. In the year i.SSO there was a consideiable increase in the ex{)enses of tin? distri(3t, charged to \m an increase of .|(»5,()()0, 1 think. I saw it Homewlicres, and I would be glad if you would explain to the commit- tee, in your own way, how that occurre legal ones. Th(^ result was the number of (list illeiies increased \('r\ hirgelN. I have a memoraiidiim here THE SIXTH DISTRICT OF NORTH CAROLINA, 231 Q. Refresh your memory by your memorandum. — A. It increased the number from 59 to 198 ; then the subsequent year to 237 ; after that to 32(J. Each of these were snuill distilleries running. Q. What time does that embrace I — A. Those were all subsequent years ; one year after the other— 1878, 1879, 1880, and 1881. Q. I am talking about tlie year 1880. I want to account for the in- crease in that particular year. — A. It was occasioned by the same cause; it increased to 237 that year. The distilleries were running then. A great many were allowed to run at a capacity of three bush- els, or three and a half bushels, ])er day, and the production was not over two gallojis to the bushel, making an income of $7.20 per day. From that the expense of tbe store keepers {$',> a day) had to be paid. That is the reason why the increase of exi)enses was proportionately larger than the increase in receipts. In 1879, 198 distilleries were oper- ating, and the store-keepers were paid ninety-eight thousand odd dol- lars. In 1880, 237 were running, and the store-keepers were paid one hundred and sixty-one thousand odd dollars. Q. That nmde the |G5,000 increase?— A. Yes, sir; but the increase in collections was proportionately greater — that is, in the income to the government — although nuire was paid out apparently for the pay of store-keepers. In the year 1879 $336,000 was collected, and in 1880 $457,000. Q, From what you say, then, the gOYernment does not lose money by the increase in the number of the distilleries, but rather makes money by the oijeration f — Ji. The government has made money; yes, sir, Q. Do you know whether Dr. Mott, previous to that time, had ex- erted all the diligence in his power to break up these illicit distilleries through his district ? — A. I know he had. Q. A great many were broken up ? — A. A great many were broken up. Q. But a great many still continued ? — A. But it was not entirely suppressed. Q. By this operation they became legal distilleries, and increased in number? — A. To a certain extent. Q. You have heard a great deal about store-keepers dividing their pay with distillers ; the rumors as to such ? — A. Yes, sir. Q. Have you ever known an instance of that at all while in ofiice'? — A. I have never known an instance. I know the collector endeavored to find an instance and to secure evidence which would warrant him in proceeding either against the distiller or store-keeper who so divided, but he was uuable to do so. It therefore resolves itself into a mere rumor, so far as the of&ce is concerned. Q. Have you ever been able to detect any single individual at it ? — A. No, sir. Q. I understood you to say just now that the expenses were paid in the district by checks sent from here ; that is, the collector was not al- lowed to pay for salaries at all from his collections ? — A. None what- ever. Q. There is no instance whatever in which he can pay from collec- tions ? — A. Not a cent. Q. How many counties are there in that district ? — A. Thirty-four. Q. Are they large couuties? — A. Yes, sir; very large. The area from one end of the district — from east to west — is about four hundred miles, I should think. 232 COLLECTION OF INTERNAL REVENUE IN Q. How wide is it? — A. It is probably two liundred and fifty to three hundred miles wide from north to south in its widest part. Q. Does that embrace the mountain region of North Carolina ? — A. Mostly all mountain. Q. Both the Blue Eidge and Alleghany Mountains ? — A. Yes, sir. Q. Is Cherokee in that district ? — A. Cherokee is in the district, the uttermost western end, and Union County is the uttermost eastern limit. Q. About how far this side of the Blue Eidge does it commence ? — A. Salisbury, I think, is one hundred and ten miles from Asheville, and I think Asheville is about one hundred miles this side of the Blue Eidge. Q. This embraces the Piedmont country, then the Blue Eidge range of country between there and the Alleghanies, and runs into the Al- leghany Mountains on the Tennessee line? — A. All the way to the Tennessee line. Q. Is it a very, difticult district to get entrance to in the various localities "?— A. Yes, sir; very few facilities, except on horseback. Q. The roads are bad ? — A. The mountain roads are very bad, and the distilleries are mostly located in those mountains. Q. Were there more violations of law five, six, or seven years ago than there are now in that district ; has there been any improvement ? — A. I think there were more. In fact I know there were. The dockets of the court and the records of the office i)rove there were more, Q. There has been a general improvement in that district, has there ? — A. A very decided im])rovement. Q. You know the character of the officers under Dr. Mott — I mean his subordinates — can you state Mhether the character of those sub- ordinates is. good, bad, or what ? — A. Generally very good. The doctor had a system of making ajipointments that would warrant the char- acter of the men, especially if he did not know them, by requiring from each one not only an application for the office, but an indorsement from the citizens and well-known people of the neighborhood, of his acquaintance, and especially if he did not know them personally, he got a guarantee of their character, and if he found them out at any time to be unworthy, either by character or habits, the invariable rule was to dismiss them. Q. Did he allow them to drink ? — A. He issued an order in 1876 against drinking, warning any man who drank that he would dismiss him, and he has kept the ordei- in force ever since, so far as I know — so far as rejtorts have been made to me. Q. Y(ni were a good while employed in the Internal Eevenue Bu- reau in Washington '! — A. 1 was for about three years. Q. v\.nd gained a great deal of experience in the working of the rev- enue system in other districts of the United States by observation? — A. Yes, sir. Q. And yon were en)])loyed down there as Dr. Mott's chief deputy in l-ST"), ;ind have been therc! ever since? — A. 1 was hisdei)ntyin 187.">, and his cliicr (h'piily a1 a snbsccpiciit date ii|) to the time when he re- signed. i). Wlicrc is your uatixc i»la, (KHMbr expenses was used for politi- cal |»urp(>ses '. — A. I have heard il eharged, and saw a statement to that eti'ecl in I lie press. THE 8IXTH DISTRICT OF NORTH CAROLINA. 233 Q. Did you hear an iiivestij^atioii tLreatened into the matter in the State — into the use of that $05,000 for political purposes'? — A. I have lieard that, and have seen it in the papers to that effect, that an in- vestigation was to be made ; yes, sir. Q. Was to be made by Congress! — A. By Congress ; yes, sir. And I liave seen the resolutions introduced, not only in the House, but in the Senate, to that etfect. Q. And you say there was not a word of truth in it; nor was it pos- sible for anytliing of that kind to occur under the revenue law and the regulations ? — A. You probably refer to the statenu^nt that the money was i)aid from the collections ; there is no truth in that statement, whatever, and it is impossible for anj^ truth to be in tliat statement. Q. How did the |G5,000 increase couie to be incurred ? — A. Through the increase of the distilleries and the consequent increase in the num- ber of store-keepers at these distilleries. Q. But it had no connection whatever with i)olitical purposes in any shai)e or form? — A. None whatever, so far as 1 could judge. Q. I wish you would explain what is the duty of a general store- keeper as distinguished from a store-keeper and ganger? — A. The duty of a general store-keeper is to take charge of suspended distilleries when there is less than 2,00. t gallons in each warehouse, respectively. Q. And the appointment is made for the puri)ose of saving to the government the per diem exi)ense of a regular store-keeper at that dis- tiller}^ when nnder suspensitui ? — A. The general store-keeper has some- times a large number — from three to twenty distillery warehouses, each containing less than 2,000 gallons of whisky. He is paid $4 a day for the general charge, and if a store-keeper was put at each of these dis- tilleries he would be i)aid $3 a day at each one. The government therefore saves the difference in the number of warehouses taken up by him. Q. Is the collector's district divided up in divisions ? — A. So far as the divisions of general store-keepers are concerned it is. At first there were three employed ; as the distilleries grew the number was in- creased ; the Commissioner appointed two more, and as they still be- came more numerous, and suspended at times, and the duties became more onerous, two more were appointed, until now seven are acting in that capacity. Q. Mr. Drake, at Statesville, is one of them ? — A. Yes, sir. Q. How long has he been a general store-keeper? — A. About four or five years. I am unable to say definitely' without the record before me. Q. Some intimations have been made in the investigation that he has not attended to his duties properly. Will you state whether he has or not? — A. Yes; so far as I am a judge, he has attended to his duty prop- erly and promptly. Q. You are in a position, to know whether he does discharge his du- ties or not ? — A. I think so. Q. He lives in Statesville, where you reside? — A. Yes, sir ; States- ville. That statement probably -arose from the fact where a general store-keeper has from ten to a dozen or fifteen warehouses in his charge, and two men twenty miles apart desire to tax-pay or withdraw whisky on the same day; the general store-keei)er is only able to go to one of them, and it has been in some cases the custom to appoint or delegate his duties to another qualified or sworn store-keeper, in order to satisfy or accommodate the tax-])ayer. I know no other way in which Mr. Drake did not jierform his duty except that. Q. It was impossible for him to go to two distilleries on the same day twenty miles apart? — A. Physically impossible. 234 COLLECTION OF INTERNAL REVENUE IN Q. It was not only a convenience to tlie tax-payer for him to get an assistant to help him in a case of that kind, but was it not to the tax- payer's interest in a business way, as otherwise he might lose a sale, or something of that sort? — A. I think that is very i)robable of a party selling merchandise should he not deliver it on time according to agree- ment, and was delayed in it l)y the operation of the government officer. He would probably blame the office for not attending to the business sooner. Q. Was there any impropriety at all, in your judgment, in Mr. Drake doing that ? — A. I don't think there was, especially as his duty was performed by another sworn and bonded officer of the United States, withont extra expense to the United States. Q. Was it not the wish of the collector and his instructions that these distillers should be accommodated in every reasonable way ? — A. He lias always endeavored to accommodate them, and so expressed his wish that th"3' should be in every reasonable and legal way. Q. And such practices as that you mention of Mr. Drake sending on these occasions some one in his place was for the accommodation and interest of the tax-payers ? — A. Solely. Q. Is Mr. Drake a man of character ? — A. Of the very highest, sir. Q. From what you learned in the Internal Keveuue Bureau at Wash- ington, from observation or otherwise, and from what yon have learned from your experience down there in the sixth district in regard to special agents sent out to make investigations and reports, I wish you to state whether it is not the usual cnstom and practice with tliese special agents to make loose and ill-considered re]>orts. — A. I would not like to say it is their iiractice. I know very many cases in which they have done so. Q. Given common rumors ? — A. Common rumors ; yes, sir ; without foundation and fact. Q. Do you know instances in which they would report a mere flying' rumor without investigating it, or without what you would call an ade- quate investigation? — A. Yes, sir; I know several. Q. Do 3"ou know an instance where, upon investigation, it turned out to be nothing! — A. Yes, sir. Q. These special agents have a sort of pride in making voluminous and high sounding reports, do they not? — A. Speaking for them, I am not able to sa\ . I should judge so, though, from the nature of some of the reports emanating from them. Q. From the sixth district? — A. Yes, sir; very recently. I have known of instances where their reports were made, and contained innu- endo, and have occasioned a great deal of trouble in consequence of that, without any foundation in fact. I have discovered that in my own case. Q. l''rom your observation and experience in this matter, if you saw in the department a report of a special agent in regard to any matter in the distiiet, where they W(n'e sent to investigate it, would you give much (Tedeiice or lia\-e miieh eonlidence in it? — A. In the agent's report .' (). \'es, sir. — A. It would depend greatly upon the agent who nmde the rep(trt. 'IMie majority of those 1 havebeeoiiH* aecpiainted with since 7iiy ollieial duties in the sixth district of North Carolina commenced I would not gi\(^ luueli eredenee to. (^. 'I'hey ly that is one reason why they do it. Q. The office of a store-keeper and ganger is a very im])ortant office in the coUection of revenue f — A. Yes, sir, and faitlilul oflicers arc \'erv important to be had. Q. You found a great many distillers in tliat district i or giiuger ; how was that paid to him ? — A. The gangers are i)aid (litrcrcntly from tlie other officeis, l)ut the store-keepers' and deputies' salariiis ar(^ ])aid by check u])oii tlic public depository, which is the lialcigh National liaidc. (}. Why is that; why cannot the collector just pay out of the money coll('(;f('d, if h('s;iw i)ropcr? — A. Because it is contrary to the law and r«'gMlations. Q. v\nolitieal assi^ssmcut amounted to in ISSO? — A. I (;an- iiot ; 1 iicxcr kei)t iiii> record. (,). \\'li(t (lid ^ — A. I don't thiid< that anybody kept any record of tliiit. i rould csliinatc aliout how mnch was gi\'en by the various offi- (•CIS lor polil icai imiposcs. Q. Dining the, (;ani|)aign of l.SSO .' — ,V. V'es, sir; so far as I can Judge. (^. What is your estimate '/ — A. My estimate is that there was about $8,000 given. I have estimated it variously at from six to eight thou- THE SIXTH DISTRICT OF NORTH CAROLINA. 2 3 it sand dollars. A great many officers who were supposed to be able to pay did not, and have not to this day — quite a number; and I esti- mated that if about one hundred of them had paid, and ])aid in sums of from fifty to one hundred and four and to one hundred and eiglit dollars, l^robably it would be about $75.00 on the average, and in that way I came to my conclusion that there was about seventy-live hundred to eight thousand dollars. Q. Do you know how much it was in the previous campaign ? — A. No, sir. Q. In 187G !— A. No, sir. Q. It was not so much as that in 1870? — A. I do not know, sir; probably they contributed as uuich in proportiou to their means. Q. If the officers contributed such a per ceut. of their salary, the more officers contributing, the larger the amount would be ? — A. If they had all contributed. The officers were very liberal in their con- tributions. I know that, and those who had the political welfare of the party or State at heart would contribute, as I said, very freely, very willingly, and without any pressure. Q. Who kept the record of how much was collected ? — A. I do not know, sir, that any record was kept except by the committee who re- ceived it. Q. Who received the mone^' at your office ? — A. Nobody received the money at our office. y-"'^/^ Q. A great many ha^e sworn here that they jmid their checks or gave their checks into the office to you, or to Dr. Mi)tt ? — A. Never to me, but they were paid to Dr. Mott as chairman of the executive committee, as I understood — this I do not know of my own knowledge — and were sent by him to the committee. Q. Now, somebody would necessarily keep a record of what was received ? — A. If anybody did, I presume Dr. Mott has done so. Q. You did not, at all events ? — A. I did not. I at one time drew off a memorandum of tliose who had paid up to a certain date, as a guide for the collector, for that puri)ose. Q. Why as a guide ; how so f — A. So as to know who paid and who had not. Q. So as not to call on any who had paid ? — A. I presume so, up to that time. I handed it to him. I never kept a record since ; in fact I kept no record previous to that time. Q. Do you know who the money was jjaid to, and for what purpose"? — A. It was i^aid for political purposes, so far as I know, and that only from hearsay — I may say, paid to Dr. Mott as chairman of the execu- tive committee, and by him to the committee. Q. What committee ? — A. The Eepublicau State executive com- mittee. Q. Do you know whether any newspapers were reci])ients of part of this money? — A. Not of my own knowledge — no, sir; could not swear to it. Q. Have you heard so ? — A. Not of my own knowledge ; cannot swear to it ; have not heard that newspapers have been recipients of any por- tion of this money, but I should presume they would receive some por- tion for campaign expenses in proper form — what was due them. Q. Do you know anything of a circular letter addressed at any time to the officers inquiring as to their politics ? — A. I do, sir. Q. What was it ? — A. So far as I remember, the Commissioner of In- ternal Revenue desired to kuow the politics of every officer in the dis- trict, and requested the collector to ascertain it. The circular was addressed to each officer throughout the district, I believe. 240 COLLECTION OF INTERNAL REVENUE IN Q. When was that? — A. I am UDable to state the date. Q. What year? — A. lam unable to state the date. I did not bear that in my memory at all, and simply know that such a printed circular was sent to each officer at the request of the Commissioner of Internal Eevenne for some pnrpose of his own. Q. Could you furnish me a copy of that circular? — A. No, sir; I never kept one ; In fact 1 never saw anything but the proof of it. It was handed to the messenger to address it to the different ofiticers. Q. That was done at the instance of the Commissioner of Internal Eevenne ? — A. I am very positive it was, for the simple reason that i^ome replies were of such a nature as seemed to indicate that the Com- missioner was asking- too much of them. Q. You spoke of the duties of a general store-keeper; whose duty is it to carry the key of a distillery which had suspended, if there were less than 2,000 gallons in the warehouse ? — A. It was the duty of the general store-keeper to have charge of it,and the keys and books were left in his office or in the main office. Q. The collector's office? — A. Yes, sir; he was responsible for them. Q. Y^ou say Mr. Drake had been in office four or five years ? — A. About four or five years. Q. I will ask you if he has not been there over ten years ? — A. I do not think he was a store-keeper when I went there in 1875. I know he was not. Q. Was he a store-keeper in 1876! — A. Without having my record, I am unable to swear positively, but think he was not. Q. We have a record here that he was a store-keeper from the 1st of January, 187(3, up. — A. Probably correct; I know he was not a store- keeper when I went there in 1875. He was appointed subsequent to that time, but the date I am unable to state. Q. Do you recollect when Mr. Daniels's distillery was seized ? — A. I do. Q. Who had the keys of that distillery at that time "? — A. That is a question which might be answered in several w;iys. Daniels's main distillery was operating and the store-keeper on duty at his main distil- lery had the keys of that distillery. Q. Who had the keys of the one that was suspended "? — A. Freeze's distillery you refer to ? Q. Yes, sir, Freeze's ? — A. I have ascertained that Mr. Bogle had those keys, or got them from the office, and they got into the possession ot Mr. Daniels through him. Q. Through him? — A. Yes, sir. Q. Whose district as general store-keeper was that distillery in ? — A. I think it was in Mr. Sharpe's. Q. Which Sharpe?— A. (1. W. I think, if it was in north Iredell. If so, it was in Sharpe's district. Q. It was within a mile and a half of the town of Statesville, was it not? — A. Yes, sir; hut a division was made in the county of Iredell north and south of the railroad. Q. ^Vt all events Mr. Sharpe did not have the key? — A. No, sir. Q, Me was the. general store-kee|)er and it was not in your office? — A. Xo, sii-; not iit 1 he tinu' of the seizure, that is according to the records of the cleilv who had charge of those key«, informs me. (j. Wjieic were you at the time that distillery was seized? — A- The Fi(*eze's distillery ? (^. Yes, sir. — A. 1 was in Statesville. i^,. McMcLci'r says in his re])ort that you could not be found? — A. He did not look for me verv Inird, Ix'caiise I was not out of Statesville. THE SIXTH DISTRICT OF NORTH CAROLINA. 241 McLeer's report is the report F liave referred to; I have only seen it in tlic ])ast two weeks, and in it there is a good deal of iiinueii to that time. I further .said that I thought he took that whisky and ought to 1m' convicteortaut information which can be obtained from other districts in this State in a few hours, by telegraph, takes weeks to get from the sixth district, greatly to the detriment of the goverumt-ut's interests. To illustrate : On December 10, 18bl, there was seized in this district three wagons containing thirteen packages of illicit brandy, three of the packages bear the stamps, marks, and brands of distilleries in the sixth district, two from one distiller and one from another. The last-named package was tax paid in April, 18yl, the two packages tax paid in September, 18^1, and orujinaUy contained corn whisky. On the day of the seizure I wrote Collector Mott, giving names of distillers, serial numbers of casks and of warehouse and tax-paid stamjis, name of the store-keeper and ganger, and date of tax-paid stamps, requesting to know to whom the distiller disposed of these packages. On December 22, not having received an answer, I wrote Collector Mott again, asking him to send me th(^ information called for in my letter of the 10th instant. Under date of December 23, he sent me the information in regard to the two ])ackages tax paid in September, 1881, but as yet I have not received the informa- tion in regard to the one package tax paid in April, 1881. Q. Did you know anything of that? — A. I do not recollect that cir- cumstance, but if such a thing did occur it is probable the distiller re- sided miles away from the office of the district, and his letter was re- ferred in due course to the division deputy to obtain the information, and send it to the office. When it was received it was transmitted to Mr. Brooks. We have no telegraphs or railroads, and have to depend upon the division deputy' to do all that work, and I deny that any re- quest ever sent by Mr. Brooks to the office that came under my cognizance did not receive my immediate attention or the collector's. I positively deny that under oath. Q. You have stated you know of no official misconduct on the part of Dr. Mott during the time you have been in office: that is so, is it? — A. 1 know of none. Q. Do you know of any on the part of any of the other officers of the district? — A. Several, I think, have been discharged for official mis- conduct; for negligence, &c. Q. We are investigating the whole department, not Dr. Mott partic- ularly. You say you know of no instance of misconduct in the depart- ment ? — A. I know of several instances where men have been discharged for official misconduct. Q. Do you know of E. A. Cobb, who was discharged for alleged com- plicity in frauds? — A. I know Cobb was discharged, but do not recollect the reason of his discharge. 244 COLLFXTION OF INTERNAL REVENUE IN Q. lu the official list of subordinate officers dismissed on charges in the sixth district of ]Srorth Carolina by Collector INfott, K. A. Cobb, store- keeper, is mentioned as being- dismissed November 1, 1878, for malfeas- ance in office. True bill found by the grand jury. Do yon recollect anything of that? — A. I do not, sir; 1 simply know that fact, that about that time he was discharged. It is recalled to me by your read- ing that; but the facts, or the erforms the duties of a deputy. Q. When was he assigned to that irresponsible deputyship ? — A. That I don't recollect. 1 know he was for some length of time acting as a raiding deputy. Q. Do you know that he is now ? — A. No, sir; he is not in now. Q. When was he put out again ? — A. When the appropriation for that purpose was exhausted. I think about a year ago — he w^as simplj"^ dropped, not put out. Q. In a statement of payments made to store-keepers by J. J. Mott, collector of the sixth district, North Carolina, from July 1, 1875, to June 30, 187G, I see Mr. E. B. Drake drew pay for November, 1875, at $130, and for December, 1875, $135 ; that brings it up to January, 1876, and the vouchers for the same are tiled ? — A. He could not be a store- keeper at a hundred and thirty and a hundred and thirty-live dollars, sir. The Clerk. The roll says the rate is $5 per day, and for the quarter ending December 31, 1875, he is put down for November, $130, and for December, $135. By the Chairman : Q. That is before it was reduced to $4 per day ! — A. Yes, sir ; I sim- ply meant, though, that he was not a store-keeper when I went therein 1875. Q, Do you know that Mr. Cobb was indicted ? — A. I did not; I know nothing of the details in his case, or cause of his disnussal. Q. Do you know what becanie of Mr. Setzer ? — A. AVhich Setzer ? Q. He was storekeeper at Mr. Clarke's when his distillery was seized'? — A. My impression is he was dismissed. Q. Was he ever restored to the rolls *? — A. No, sir. Q. You recollect the seizure of Mr. (Marke's distillery ?— A. Mr. Clark<'As distillery was not seized. Q. 'i'licin, of c<)urs(;, you do not recollect the date when it was seized? — A. No, sii-; 1 do not. (). Do yon recollect when it was ascertained that three or four hun- . Mott. He had it from the pievions Oetober. Previous to that time it was in the district of Mr. Vj. M. Drake, who had it since its suspension. THE SIXTH DISTRICT OF NORTH CAROLINA. 245 Q. Do you know who had the key at the time this li(|u<)r was ab- stracted I — A. Yes, sir ; 1 know tliat Mr. Setzer had the Icej' ; at least it was so reported at tlie oftice. Q. Was it lawful for Mr. Setzer to liave it ? — A. Not under the cir- cumstances. I do not think it was ])roi)er, althougli Mr. Setzer was ap- pointed store-keei)er, and expecting;', as I understand it, to j^o on dutj^ and resume operations at an early day ; but it j^ave him no rij>ht to the key ])ersoii;illy at the time, Init I siiwlie Wiis olfended, :ind since that time he h;is been doing ;ill lie ciin l»v innuendo iiud r<'p(»rt to ;it(iiek my name ;ind ol'licial dnties, (). Do yon know that he went deliberiitely to Avork to have yon ]»ut out of (»lljee ■/ — A. I know it now . I did not know it until a week oi- ten diivs iigo I hilt tlieie were reports luiide ;ig;iinsl me b_\ him. I ni^'ei' was allowed to know I he eli;ir!M'ter (»!' t hem, noi- did 1 know his reports, which wcrr |iiiiili'il or \\iilt( ii — wliiil \\;is in llieni. THE SJXTH D18TRICT OF NORTH CAROLINA. 249 Q. These rei)orts were made to the Commissioner of Internal Kevenue ? — A. I am so informed. Q. Did he investigate them ? — A. Yon mean the Commissioner ? Q. Yes, sir. — A. He has not, that I IcnoAv of. He ])robal)ly, liowever^ has incjuired as to tlie substance of tliem, or I wouhl not be in otitice, had he not come to the conchisioii tliat tliey were niiibiinded. Q. You were retained in oftice without any conii)hiint of the Com- missioners, notwithstanding what Brooks has said about you ? — A. I am retained in olhce. Mr. Pool. What is the date of tliat report of Mr. Brooks's? The Chairman. It was 1880, 1 think. By Mr. Pool : Q. Yon are not aware that Mr. Brooks's rejiorthas jnoduced any im- ])ression npon the Commissioner of Internal Revenue adverse to you ? — A. I do not think he has any adverse feeling toward me now ; but I think that there was an impression produced on the department after his return, because I was sensible of it myself. Q. You think since he has looked into the matter he has sustained you? — A. I have heard nothing further since it has been explained to him by my friends. I knew nothing of the character of the report at all until I arrived here a \veek or two ago. 1 never knew he made any report against me. Q. You spoke of Mr. Cobb as having been removed from office and afterwards employed as a special deputy for raiding. He was simply employed as a raider. What do you mean by that ? Please explain the duties of a raider. — A. There is a certain allowance made by the Commissioner of Internal Kevenue monthly for the employment of men to ride around through the country to discover and destroy illicit dis- tilleries. He was not required to be a man of education, but simply to know the paths in the jnountain, &c., and, as I stated before, they have no responsibility, as division or office deputies have. They give no bond, and are emi)loyed from n»onth to month the same as an ordi- nary watchman or a policeman is employed to arrest men ; that is the character of a raider, and Mr. Cobb was one of those. Q. It was necessary to have a man who knew the by-ways and knew how to go through the country ; and was it not well to have one wdio was acquainted with these distillers t — A. Yes, sir; that was the char- acter of the men required, who knew not only the country but the dis- tillers, and they were smart and courageous enough to go around amongst them and destroy their illicit stills. Q. It was not requisite for such a man that he should have particu- larly a high character for honesty ? — A. Oh, no, sir. Q. In that respect the position of a raider was dift'erent from other revenue officers '? — A. Very different. Q. Do you consider Mr. Cobb a good man to break up these illicit distilleries ? — A. I thought at the time that he i)erformed his duties in discovering and breaking up distilleries very effectively. The collector thought so also. Q. Did he break uj) many ? — A. He was the effectual means of break- ing a gooIe litth' imjx'r, stating" the services performed and giving' a receipt i)er diem for tlie same. H. W. Moore sworn and examined for the g(»\ernment. By the Chairman : Question. Where is your present residence, and what is your occupa- tion *? — Answer. I am residing in this city, and am em])loyed in the Sixth Auditor's Ofitice. Q. Were yon at one time in the revenue service of the sixth district of Xorth Carolina ? — A. Yes, sir. Q. In what capacity ? — A. Store-keeper and ganger. Q. Who were you store-kee]>er for first? — A. John H. Davidson, at Marion, McDowell County, and afterwards for A. Simmons. Q. How long were 3'ou with him ? — A. With iNIr. Simmons one month over a year. Q. Where did you go to then ? — A. Then I resigned from the reve- nue service and went into mining. Q. You were not in the service any more after that ? — A. Xo, sir. Q. Were you ever a store-keeper for John Carson ? — A. Xo, sir. Q. Where was Mr. Carson's distillery ? — A. It was known as Carson's, but Davidson was the i>roprietor. Carson never run the distillery to my knowledge. Q. He was interested at all events, lie was the owner of it ? — A. I should think not. It was in the seventh district. Q. That is the one I am thinking of. Did it susi)eud before you left ? — A. Mr. Davidson, you mean ? Q. Yes. — A. Mr. Davidson closed up and Simmons succeeded him. It was in the seventh district Ijefore the district was changed. Q. How much whisky did you leave in the warehouse when the dis- tillery suspended"? — A. lam not able to state that. My reports will show. There were two warehouses in charge of the store-keeper there, and I have forgotten the number of gallons in each. Q. Were you in charge of both ? — A. Yes, sir. Q. Do you recollect the number of barrels ? — A. No, sir; I could not recollect, but I could give it to you approximately. By I\lr. Pool : Q. What time was this ? The Witness, It was in 1878 or 1879. T went therein March, 1878, and left there in June, 1879. I think in the Simmons warehouse there was something' over 2,(»00 gallons, and in the Davidson warehouse possi- bly 1,200 gallons. The reports in the oftice show all these things. Q. Did you gauge it to ascertain the quantity when you left and re- l)ort it ? — A. No, sir; I gauged it in. It is not the rule to gauge when you leave a warehouse. You turn it over to the officer succeeding you. Q. Was it not afterwards discovered that a large part of those bar- rels i)urporting' to be whisky contained water? — A. So I learned while in Washington ; 1 heard that report while I was still in Yancey. Q. How much of it was found to be barrels tilled with water ? — A. I do not recollect the number. The men know who investigated it. The whole matter was investigated, so I understood. Q. Have you any reason to believe that was changed while in j'our care f — A. No, sir. Q. Who succeeded you as store-keeiier? — A, M. M, Teagne, 252 COLLECTION OF INTERNAL REVENUE IN Q. Wbeu was it discovered — dining- Teagiie's administration ! — A, Yes, sir. Eight or nine months after 1 left. Q. In whieh warehonse was it, or was it in both of them ? — A. I do not recollect. I think ])ossib]y in both. I do not recollect those cir- cnmstances. I only heard the rnnior as it came from Marion. Q. Have you any knowledge of any contract between the distiller and collector and the owner to pay the taxes on tlie whisky for him ? — A. Xo, sir. A contract between the distiller and collector and the owner ? Q. Yes, sir. — A. Xo, sir. Q. To pay the taxes for the owner, the distiller, and collector; the distiller was not the owner of the whisky, as I understand it. — A. The distiller Avas the owner of the whisky, so iar as I know. Q. Was there no contract between any of the government officers and the distiller to pay the tax, tine on the same, and to say nothing about it"? — A. I^ot to my knowledge. I never knew anything of that kind. Q. Did you ever tell any one that Dr. Mott had threatened you ? — A. No, sir. Q. And that if he did turn you oft" you would come here to Washing- ton and '' bust " him f — A. ISTo, sir ; I am positive I never said anything of that kind. Q. Were you not attacked or accused in some way as being responsi- ble for the loss of this whisky "? — A. I understood that Teague said that the warehouse Avas left in a bad condition. That is the only knowledge I had of it. I never paid any attention to it, for when I turned over the warehouse it was in good order, as the reports showed ; and I think that matter was determined by the department. Q. You reported it in good order ? — A. Yes, sir. He received it in good order and examined it at the time it was taken. Q. And you did not know anything of any arrangement to pay the taxes for the lost whisky ? — A. l^o, sir. Q. During the time of your charge there, did Mr. Carson exercise any owiiershi]) about the distillery warehouse ? — A. The distillery was upon his propinty, and he had furnished grain to the distiller, and as I un- derstood he was to be i>aid out of the sale of the liquor taken out, and it was his mill that was used. The distiller had to pay for it, and the distiller was not a very resjtonsibh^ man, and he ])ossibly had a lien n]»on the liipior, and 1 only inferred that he would necessarily take care of his own interest. J. Ta'S'Lok, swoi'n and ex.imined for the government. r>y the ("lIAIIJMyVN: (^Micstion. \Vher<^ is your residence? — .Answer. Cherokee County, >«'ortii ( 'aiolina. i^. NN'liat is your age '. — A. 1 will be si\t.\ -one in October. (}. State if you or any of your lamily at aii> time have been engaged in distilling. — A. ^ly son was engaged in it. Q. What was his mnne ? — A. flohn M. Taylor. (^ When did he begin to distill '?— A. Wcdl he tiled his bond in Feb- ruary, 1S7!». (i. Tell the \vlM»le story. — A. in May, lS7i>, lie was reijnired to tile a n<'W bond. At the commencement of tli«' fiscal year In' madi' an a])pli- (•ation for the s;ime to l'\ I*. Axh\v, the de|Mity collector. (). lie resides in ih;it connty .' — A. He lixcs in iMMr|)liy. lie was THE SIXTH DISTRICT OF NORTH CAROFJXA. 253 at liim iVeqneiitly to know when his bond would be back, so as to com- mence; not hearing' iu Sejitember he addressed a letter to tlie (h'part- ment. Q. What rn and everything ready, and he received a letter from Mr. liogers, the de])uty commissioner at Wash- ington, stating he had referred his letter to Dr. Mott, and referred my son to that office. Not long after timt the letter arrived that he had written for an explanation from the office at Washington, and on the back of his letter was written, " It was supposed his bond had been .sleeping quietly in some local post-office." That was all the explana- tion he got. Q. Saying his bond had not gone on promptly. — A. That was from Dr. Mott. His name was to it. But Mr. Axley said the handwriting was Mr. Coite's. On the IGth of December an order came to put him at work, and they started the distillery on December 16th, the same year. They put Mr. H. L. Howell in as store-keeper. Q. He was put in as store-keeper? — A. Yes, sir. My son objected to Mr. Howell as not a proi)er num, but Mr. Axley insisted that he should go on with him, and he would have him exchanged and some other man ])ut in his place at the Urst of the next month, but that was not done. He complained that he did not want him at all, but Mr. Howell read a letter he said from the department, that he was responsible ; that the store-keepers were responsible for deficiencies. Q. You have not said anything about the deficiencies ; after you began to distill was there a deficiency found every month ? — A. A deficiency the first half month. Q. Below the minimum amount allowed — two gallons ? — A. Yes, sir. My son complained to Mr. Axley about it. Q. What complaint did he make ? — A. That there was a deficiency, and the whisky was made. Q. Who by ! — A. By Mr. Howell, who used it out of the cistern room and out of the warehouse, and he promised to remove him, but did not do it. Then Mr. Howell read a letter to my son that he was responsi- ble for the deficiency. Q. Where did that letter purport to come from? — A. From Dr. Mott. Q. That the store-keeper was responsible for the deficiency ? — A. Yes, .sir; and he saw Mr. Axley, and I saw him myself, and he said it was so; so my son had employed a man to furnish the meal and the wood, and he went off to Weverville College, up near Asheville. Q. Your son had a regular distiller employed ? — A. Yes, sir; Jack Grant. Q. And employed a man to furnish meal and wood, and then went off" to college? — A. Yes, sir; under the impression that Mr. Howell, the store-keeper, was responsible for any loss he might sustain. I was there while his distillery was running, and complained myself to Mr. Axley that my son never could stand that. The whisky was made off with, and there was a deficiency every month. Q. State how that deficiency took place. — A. It took place by Mr. Howell making away with it. Q. How did he do that! — A. He would let it go to any of his friends that would come around, and the distiller showed me an account where he had paid his own debts out of the whisky. Q. Did you see any whisky removed yourself? — A. I saw it several times. Q. How was it removed? — A. By jug-fuls, bottle-fuls, and such like. 254 COLLECTION OF INTERNAL REVENUE IN Q. Riglit before your eyes ? — A. Yes, sir; no secret about it. It was public. Q. How long' do you think your sou ke])t on distilling ? — A. He kept on in that way, trying to get Howell out, till I believe it was in Octo- ber tliat he suspended to get rid of him, Q. In October, 1880; he began in 1879? — A. Yes, sir; in October, 1880. Q. He then suspended to get rid of Mr. Howell? — A. Just for one month, and H. A. Moss was put in and he ran up to February with Moss. Q. That would be February, 1881! — A. Yes, sir; when he was noti- fied by Mr. Axley that he was going to seize ui)on the whisky, and sell his fixtures and all for the deficiency. Q. How juuch did the deficiency amount to ? — A. I never did know. I never learned. Q. How much did it amount to, according to your calculation and the distiller's '?— A. There was something over $100; $100, I believe. Q. Assessed '! — A. Y'es, sir. Q. Keep right on with the story. — A. M}- son did not feel willing to pay for the loss when it was occasioned by the store-keeper; in fact, he would not pay the deficiency because it was done by the act of the store-keeper himself. Q. Then what was done when your son refused to i)ay the deficiency ? — A. His distillery was seized on and sold out; the liquor was seized and carried away. It remained in the Avareliouse for several months. After the second or thiril sale then it was carried to Asheville and sold. Q. How much of it was sold at the distillery ? — A.' I don't know; I was not there. My son was there at the sales. Q. AVhat did it bring ? — A. I was informed by Mr. Axley that it brought 02 or 93 cents a gallon. Q. Two or three cents over the taxes? — A. Y"es, sir. Q. \Miy did they not sell it from the distillery? — A. Mr. Axley said he could not get bidders. Q. How much whisky was in the distillery when it was seized? — A. I cannot tell how much was in the house when it was first seized, but in .July, when Mv. Cooper — I think he regauged it — he gave to Mr. Moss the amount that was in, after the third sale, as 1,150 gallons. Q. 'J'hat was the sale at the warehouse ? — A. Yes, sir. Q. After .Mr. C'oopei- had gauged it? — A. He gauged it, or Moss, and gave that amount, as found by Cooper. He aided Cooi)erin gauging. Q. Is this the gauging certificate of Mr. Moss? (Quoting:) Vallkvtown, N. C, July dth, 1881. Ill (listillcr.v warclioiKse of J. M. Taylor, No. IHiKJ, in the (itli (list, of N. C, there is fourteen hiinihed and lilty >j;allon.s of corn whisky in said warehouse. H. A. MOSS, Storv-kvtptr and Ganger. A. Yes, sir. Q. That was for the liipior that had been seizt'd and sold at the still- liouse? — A. TImmc were three sides; the lirst in February, the next in IMareh. 'J'Ju'y foiccd my son fo close up in Maich. They sold out every- thing — hogs, si ill, wild everytiiing. Tlien in ^larch they had another sale. 1'lieii alter that there was a sale; 1 believe it was in April or May. Then I wrote a letter to CoII<'<'tor Mott, through Mr. Axley, as being the boiidsiiiiiii that ! would st;iiid icsponsible, asking him not to exjtose tile \\hisk\ lor .s;ile any more; tlnit i would j)ay otf the deficiency. J 1M'\ <•!• lir;ii, 8, 9, 10, 113, 14, 15, 10, 17, 18, 19, 20, 21, 22, and 48, if not withdrawn by the time mentioned, for amount due original contents. Respectfully, F. P. AXLEY, D. Coll. Q. Is that Mr. Axley's handwriting? — A. (Examining.) I believe it is; it hxtUs like it. Q. If that was ever served on youi- son, it was after the liquor had been seized'^ — A. Yes, sii'. Q. And was in the liaixls of the government f — A. Yes, sir. Mr. I'ooL. What is the date of it, Mr. Chairman 1 The CirAiU'MAN. Kleventh of Marcli, 1881. Q. The snbstaii(;e of your story is tliat your son began to distill in December, 187!l, with one Howell as storekeeper ? — A. Yea, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 257 Q. That Howell commenced using, canying- off, disposing of, and =ielling your son's liquor ? — A. Yes, sir. Q. And drinking it liimself ? — A. Yes, sir. He was very bad for drinking. Q. And you liad complained to Mr. Axley, the deputy collector, resi- dent in tbat county, and that Mr. Axley showed you a letter from the department saying that the store-keeper would be hehl responsible for the wastage 1 — A. It was Mr. tlowell who showed me a letter. Q. From the department showing the store-keei)er would be held re- sponsible for the deficiency ? — A. That he was responsible for the defi- ciency. Q. That after that your son went on distilling, and the waste and ab- straction of the liquor by Howell kept on, and there was a deficiency every month, until your son had to stop to get rid of him"? — A. He suspended for a month. Q. During the month of October? — A. Yes, sir. Q. And afterwards, in February, the liquor, still-house, and fixtures were seized for this deficiency, which amoanted A. As 1 told you, it amounted to something over $100 — I think, $192. Q. Nearly $200, then "?— A. Yes, sir. Q. And for that a part of the liquor — how much you don't know — was sold at the still-house I — A. There were three sales. Q. It brought 92 or 93 cents a gallon I — A. So I was informed by Mr. Axley. Q. And that after that sale the gangers, Mr. Cooper and Mr. Moss, gauged it and reported in this certificate that there was 1,450 gallons left ?— A. Yes, sir. Q. Which was hauled off toward Asheville ? — A. A portion of it. Q. It was s )ld there, at how much you do not know, and have never been able to get a report of? — A. I called on Mr. Axley for a report, as I was the bondsman, and wanted to settle up. He said he had made a report to the department and supposed I would find it at Washington. I cannot find it, becjiuse it could not be produced in the department, as I tried it on Friday. Q. Have you any knowledge of what was done with any of it on the road to Asheville! — A. The wagoner said they drank about half a barrel of it. Q. Was any of it sold? — A. Well, it was on the road they sold it. Q. That is what I mean? — A. Yes, sir. Q. How much did they sell on the road? — A. Three barrels were turned out in one week. Q. Peddled out as they went along? — A. They had it on the road before they started. Q. Did they sell it in bulk or peddle it out? — A. Mr. John Rowland said he got a quart and paid fifty cents for it. They sold it to anybody who wanted it. Q. You were there a ])ortion of the time when the still was running? — A. Yes, sir; I was there until it susjtended. Q. Was there not leason to supi>ose tliat the deficiency arose from the unskillfulness or ignorance of the distiller t — A. No, sir; we had one of the best distillL'rs in that whole ountry. He was one of the greatest block :nlers, and they indicted him ami got him out of the business to get him lo distill in a legal distiilery. Jack Grant made the best wliiskv. Q. Did the store-keei)er, Howell, make any pretense that Grant was cheating? — A. No; I do not know that he artment — the collector's office — and Mr. Axley said the same. Q. Why did you not pay that $100 for your son, and stop all this trouble? — A. I did not intend to do it, when it was occasioned by the store- keeper. Q. You were entirely able to do it? — A. Yes, sir; 1 could have done it. Q. Without any inconvenience? — A. Yes, sir. Q. The reason why you did not do it was that you wanted Mr. Howell to pay it? — A. We did not wan.t him there at the start. He was not a pro})er man. . Q. Why not a proi)er man ? — A. He would get drunk and cut up generally. Q. Did you ever report to the collector's office that he got drunk ? — A. Yes, sir; and Mr. Axley knew it, and knew his character; that he was a drinking man. Q. Did you ever report it to the collector's office? — A. I did. Q. That he got diiink? — A. 1 reported it to Mr. Axley. Q. Mr. Axley was the er. Q. Where weic, you then? — A. I was tlM're iVom the time they com- menced u]> to tlie tiuK^ they sus|)ended, and then I went \V\»st. Q. Did I uiKlci'sl.ind .yon corivclly to say that Mr. Howell was in the hal»il of going boldly i)efor(^ your face and taking that whisky out and using it to \n',\\ his friends with t — A. 1 have seen him do it from the tnne he first commenced. THE SIXTH DISTRICT OF NORTH CAROLINA. 261 Q. What did you say to him about it? — A. 1 complained to Mr. Ax- ley about it. Q. Did you uot comidain to Mr. Howell that he ou^ht not to do it '^ — A. I told liim time and time again that my son could not stand such wastage as that. Q. What 0 gall, p'k'g. June list. Auit. "27.00, iut. & i»eiialy that .' — A. 'I'iial there was no personality about THE SIXTH DISTRICT OF NORTH CAROLINA. 263 it, nothing: personal in it. It was an internal revenue business trans- acted under the laws ami regulations of the [nternal llevenue Bu- reau. Q. You mean to say u])on the reports made on form 14 by the dis- tillers themselves f — A. The distillers themsehes. Q. To the bnreauin Washington and theassessment was made here? — A. Yes, sir; at Washington. Q. Dr. Mott had nothing- to do with that ! — A. No, sir. Q. It was sent down to Dr. Mott to collect, just as a slieriff collects a debt, and he had nothing- to do but to obey that order ? — A. To make the collection, that is all. Q. From the relation Mr. Taylor has given here, was that the usual i'ourse pursued in making- collections? — A. Except in one sense, that a greater delay was made than necessary by Mr. Axley, and that Dr. Mott commented upon his conduct that he delayed it too long, three or four months' assessments standing on what we call the assessment list and <;liarg-ed against Dr. Mott, because not collected. 1 remember onetime he was quite indignant at Mr. Axley because he had not made collec- tions before. Q. Y^ou did not mean in this particular case? — A. Not in this par- ticular case, but in others. Q. But yon say in this particular case there was remissness on the part of Mr. Axley ? — A. Not remissness ; but simply delay in order not to ])ress the distiller and to drive him to the sale of his property ar- bitrarily. He was given every opportunity to ex[)lain or i)ut in forms for the abatement of the taxes, and my belief is he refused even to do that. Q. You say these complaints Mr. Taylor speaks of, relating to Mr. Howell, did not reach the office at Statesville! — A. I knew nothing of it. I never heard of it until Dr. Mott removed Mr. Howell and put Mr. Moss in his place. It may have been reported to Mr. Axley, but Mr. Axley did not re])ort that to his superior ofiQcer, Dr. Mott, that I know of. Q. How long has Mr. Howell been a ganger f — A. My impression is that he was a store- keei)er or ganger in the old seventh district before consolidation ; in other words, he was an old experienced hand at the business. Q. Under Mr, Eollins in the seventh district ? — A. I think so, Q. How long was he in office under Dr, ]Mott f — A. I think he was appointed soon after the consolidation, if not immedmtely upon it, Q. When did the consolidation take idace ? — A. I think in 1879; I may be wrong as to the year, Q, Was Mr, Howell assigned to other distilleries'? — A, I cannot tell without reference to the record ; but I think he had been, Q. Did you ever hear any complaint of him before"? — A. No, sir. By the Chairman : Q. Who is the chief of the assessment department f — A. C. A. Bates. Q. You have never examined for these papers you speak of, in the departments, have you? — A. No, sir; I simply know the usual course they go through. Q. Y^ou swear very confidently that they are all there ? — A. As nearly as I can swear to anything without having seen them; that it is all right, that in the usual course they are there. Q, You say this whole transaction was an internal revenue transac- tion aiul the usual course was pursued ? — A. The regular course under the law and regulations of the act of March, 1879, 264 COLLECTION OF INTERNAL REVENUE IN Q. Is it according to the usual course of the revenue department for a store-keeper to take liquor at liis will and i)leasure out of the cistern- room to treat bis friends with and carry it oft' as he pleases?— A. No^ sir, it is not; and when known they are dismissed. Q. Is it the usual course when complaints have been made to the deputy collector, for him to keep the reports to himself, and not for- ward them f — A. He should report them to his superior oflicer. Q. Immediately ? — A. Unless he has some reason unknown to the office for keeping- it to himself. Q. You say Mr. Axley's character is good? — A. Yes, sir. Q. Have you ever seen him? — A. Yes, sir; twice or three times in my life. Q. Where!— A. In Statesville. Q. Do you know anything as to what his neighbors say about him ? — A. I simply know that when appointed he received the indorsement* of a great many of his neighbors, as to being a man of integrity and standing. Q, He came u}) with a, petition ; that is all you know about his char- acter, signed by some of his neighbors"? — A. That ig about all; he re- ceived the api)ointment in that form probably. Q. Do you know why Mr. Howell's pay was kept back f — A. Yes, sir. Q. Why ? — A. His April pay was kept back on a report made by Mr. Axley, which led to the removal of Mr. Howell, and the substitu- tion of Mr. Moss ; ivccompanying that report of Mr. Howell it said he was to a certain extent responsible for the loss of some of the liquor» or at least the assessment that was nmde, and pursuing a precedent that had been made by the Commissioner of Internal Eevenue in similar cases, his pay was delayed for an explanation from him. The case is now before the Commissioner of Internal Eevenue, I think. Q. You say it was ascertained that to some extent he was responsible ? — A. isot ascertained, but rei^orted. Q. Who reported it '! — A. Mr. Axley. Q. Is it usual, when a deputy collector reports that the store-keeper has been in fault, and wasted the liquor, to sell the man out, root and branch, notwithstanding; is that internal revenue business? — A. It is internal revenue business, so far as the law is concerned and the fulfill- ment of the re(]uirements of the regulations. He was given an oppor- tunity to explain, and no ex])laiiation was made. Q. Who was given the opportunitv to explain? — A. Mr. Taylor and Mr. Howell. i). JJut Mr. Taylor liad nothing to explain. Mr. HomcII had. Mr. Taylor was making liie comi)laint, and Mr. Howell was the man to make the ex])laiiation, but, instead of your waiting ft)r that, you sold him out, and you sa>' that is the regular course of business in tin; Internal Rev- enue Department? — xV. In that case it was, for the simi)le reason that tin*, depart iiient had made a demand on him for fully a year for the pay- ment of the taxes, and, as a last resort, lu^ made a comi>laint, as we con- sidered it, to delay the paynuMit, on the store-keepei-. (}. I Jut it seems^ according to INIr. Taylor's testimony, that he com- ]»laiiied at th(^ very start tliat there was a. (h'tn-iency to Mr. Axley? — A. Tills is his teslimon.N. Itiit tliere is no evidence of it except that. (}. That is better tlian w iicic the'ici is no evidence. You liave no evi- dence to (he eonti'ai'y ? — A. N(>, sir. (,). Is it the usual an«l regular couise (»!' business t'oi' the internal b'e\enue Department to seize ;i mail's war«'house, take charge of his^ li(|iioi. ;iiid hohl him i-es|)oii.sii»le Ibi- the waste that occurs alter that? — A. i'"ayiiient of the taxes on the li^iuor. Q. Did you not hear read that Mr. Axley reqxnred Mr. Taylor, in March, 1881 — the liqnor was seized in January i)receding — to come for- ward and tax pay and remove certain i)ackages, or he wonld be held responsible for wastage? — A. That was anotiier case entirely. The first liquor was sei/.ed for the assessment for deticiency. The second notice,, in March, i^robably, was for excessive leakage, and the assessment was nmde at different times, under different circumstances, under the law of March, 1879 — a uew law Q. I do not care what law it was under. — A. But it was two differ- ent cases. Q. I do not care how many cases. There might be one hundred. If the government seized the liquor, and the man had no right or au- thority to enter his own warehouse, does the government hold him re- sponsible for leakage or wastage ? — A. The warehouse had not been seized at that time. Q. Then you contradict the notice. They were all in the same ware- house. Mr. Taylor. And all the same liquor. The Chairman. (Handing paper to witness and reading:) "Janu- ary 14, 1881 ; seized as the property of J. M. Taylor, upon warrant of distraint for the following taxes." Now, the other notice about the wastage was March 11, 1881, two and a half months afterwards. The former is a notice of the seizure of the liquor on January 14, 1881, and here on March 11, 1881, in the latter notice it says (Quoting): "By direction of J. J. Mott, collector sixth district, you are required, by the first day of April, 1881, to withdraw from your warehouse, on account of excessive wastage, casks Nos. 5, 8, 9, 10," &c. — A. That is exactly what I say this was. Q, But it was all seized, was it uof? — A. No, sir. Q. Does not that notice say so! — A. Only a certain portion. Q. (Quoting:) Yon are luitified that, on the 2lHt day of Feluuary, 188L at distillery warehouse, No- 139:3, of J. M. Taylor, I will sell all the whisky on deposit in said ware- lionse ; also 224 acres of land. No. 2\, iu 7'h district, seized as the property of J.M. Taylor, upon warrant of distraint for the following taxes. A. It was not seized. Q. If that was all the whisky deposited in said warehouse, what was this notice of March 11 for ? — A. That was for the balance of the pack- ages specified there that had leaked out ; and for that an amount was allowed by the government for leakage in a certain space of time. There is a table which allows a certain leakage, but this was what was called excessive leakage, and when excessive leakage occurs the tax is demanded. This other notice refers to the assessment for deficiency. Q. It says that all the liquor was seized. You mean to say that was the balance ? — A. It was not all seized. This notice of January 14 is simply a notice of sale ; that it would be sold for the taxes not paid. Q. If it all was to be sold, therefore it was all seized. Now, Mr. Tay- lor could not enter that warehouse after the 14th day of January ? — A. Satisfaction was made for the amount by the sale in that first notice, probably, for these assessments that were made. This licpior iu the notice of March 11 was remaining in the warehouse after this sale was made. Q. How do you know that? — A. By the terms of the notice, " Oii 266 COLLECTION OF INTERNAL EEVENUE IN account of excessive leakage," of what was not sold at that time. I know some sale was made, and these assessments satisfied. These pack- ages were found to contain less whisl^y than was put in originally. In other words, excessive leakage had occurred, after the sale and the residue of the taxes were demanded on it. Q. After the liquor was two and a half mouths, or nearly so, in pos- session of the government officer, assessment is required for wastage before he got hold of it'? — A. This thing had been satisfied at the time, the debt satisfied, leaving this amount remaining in the warehouse. Q. This first advertisement which I introduced shows that the whisky was not sold at that time. (Reading :) INTERNAL REVENUE SALE POSTPONED. I will sell for cash to the highest bidder, at distillery warehouse, No. l/?9:i, of J. M. Ta.vlor, on the "Jlst day of February, 1881, all the whisky ou deposit iu said warehouse, subject t" the taxes due the governuient. Aisi', '^cl acres of laud, on same day, at residence of H. A. Moss, iu Valleytowu town- ship, known as tract No. 21, in 7th district, seized as the projjerty of J. M. Taylor, by virtue of a warrant of distraint in my hand against said Taylor for internal revenue taxes, interest, *&, penalty. This 14th day of Feb'v, 1881, - F. P. AXLEY, DqmUj CoJVr, 6th Dist. N. C. So yoti see the sale was postponed and the whisky seized there was not sold at that time. Now, how do you make this mail responsible for the wastage, &c., when it was in tlie hands of the government? — A. It is a question whether it was in the hands of the government. Q. Was it not in the hands of the government when an officer had seized and closed it up and had taken the key 1 — A. I do not think there was any seizure, but a simple notice of sale. Q. The officer says lie did seize it. — A. I do not think it was taken to Asheville. It was in December last. The case is simply one of refusal on the i>art of tlte distiller to pay the just dues which the gov- ernment ]iad against him, and it was an endeavor on the ])art of the deputy collector, Mr. Axley, to collect those amounts, and it was his mode of procedure by putting in different notices. Of course, I cannot explain it, but that is the whole sum and substance of it. It was purely an internal revenue transaction of that nature. Q. Do you think there were not some grounds for believing that tliese deficiencies were caused by Mr. Howell's conduct ?—iV. Only upon the re])ort of Mr. Axley. Q. Was that ever investigated '? — A. Yes, sir; it has been. Q. Where is tlie report of that investigation ? — A. I do not know ■where it is. Q. Have you not seen it? — A. No, sir; 1 know that the Commissioner of Internal ifcxcnuc iiad the matter reported to him; that there were grounds for l»elieving that, and 1m' has ordered the check to be retained — that .\]»ril cheek, and it has never been solved oi' determined yet. Q. \Vlietlier h(^ was to be blamed for it or not"? — A. No, sir; and the che«!k still remains in the ollitu' of the internal reveniu» at Statesville. Q. lie has ne\er be(Mi i)aid ? — A. No. Q. Do you know why that matter lias nin'er be(in determined ? — A. 1 «lo not. I know llnr investigation has been entered upon. Q. Do you not think it ought to be; determiiuMl, and if Mr. Taylor -was not to he hlameil, but llow«'ll was, that Justice should be done in the ])remises ? — A. Yr, and stills, and so on, and await the results of an in- vestigation as to Mr. Howell f — A. His remedy, in the first i)lace, was to ])ut in what we call a claim for the abateuient of taxes, and, as 1 un- stood Mr. Bruner to state that you gave your distiller an order to have more mash ))ut in than you were authorized by law to do, and that he had to interfere with it. — A. I would like very much, if I could, to hear what are the exact words of Mr. Bruner. I can just say that 1 gave no such order. Q. Did you issue an order to have more masb put in than you were 270 COLLECTION OF INTERNAL REVENUE IN authorized by law to do? — A. ]S'o, sir; 1 am certain I did not do any such thing' as that. Q. Did you make any proposition to Mr.Bruner to aUow you — to wink at your acting- in an illegal way at that distillery ? — A. 1 have never had but two conversations with Mr. Bruiier the whole time he was at my distillery. I am scarcely ever at the distillery. I suppose I do not average going there more than once a month ; and I do not think there were any words ever passed between us but once or twice. Q. Answer the question as to those two conversations. — A. Do you want to know the conversations? Q. Certainly. — A. Mr. Bruuer was in the habit — helived at Salisbury, but the distillery was about two miles from town, perhaps a little more — in the habit of going down there very late in the morning, o'clock, perhaps later, uever before 8, and would leave from 1 to 2 and 3 o'clock. I never knew of him being there after 3 o'clock. I showed him a copy of the regulations; that it was against the law for me to run with- out a storekeeper; that he must come earlier and stay till the dis- tillery quit operations. A short time atter that he came to me on the street — I was in conversation with a friend — and he told me he was going to Statesville in the morning, and would try to get I>r. Mott to transfer him to another distillery ; one that was ftot in operation, but had a sufficient quantity of whisky in the warehouse to retain a storekeeper. I told him that would suit me very well. I did not like him nohow. In fact, that is the only conversation that I ever recollect taking place between us. He might have said "Good morning,'' or something like that. Q. You never made any proposition to him to wink at your operating- your still in any unlawful way ? — A. 'No, sir. Q. Why did you not like Bruuer '? — A. I cannot say that I did really dislike the man. 1 did not like his style. Though I never showed any disposition to get him away or have a change made at all. It was all his own work. Q. What was there about his style as a ganger and storekeeper that you disliked ? — A. I did not think he was much of an officer. Q. One thing was that he did not go out soon enough in the morniDg, and left early in the evening ? — A. I could remedy that very well. t cannot say that I had any particular reason for disliking- the man, or that I disliked him very much. But I did not like the style of the man. Q. He had been raised about town f — A. Yes, sir; he had. Q. Did he render you any assistance thereat that time, helping you to make out the accounts, »Scc. ? — A. No, sir ; he never done a thing. i). You could get nothing- out of him of that sort? — A. No, sir; nob a thing-. Cross-examination by the (3hatrman: Q. You say you were not at the distillery more than once a month ? — A. I might liav(? gone there oftcniH- wiien he was there, but since tlieii I liave n()t aveiaged irior*' than (uice a month. (^. Who did your business at the distillery ? — A. My distiller did. (^. What was the name of your distiller at that time ? — A. I was try ing- to think ; I cannot recolle<'t to save my life. 1 had several young m(Mi. It was eitlu'r McCulloh or Martin. I cannot recollect which of the two. (^. Had .\()u not been in tii<' liahit, wit h other storekeepers before Mr. I'ruiu'r, of making a doulth' ma.sli and i>utting in twice as nuich as the law ;dlowcy an ordi-r of tlu', Jii that, a charge against ('olonel Henderson, and I tlu)ught at the tinu? it wascorrect. It turned out afterwards to be a mistake. Ft was in regard to tlie }Mlrcha^c of books from an attorney since deceased. It war, alleged that Colonel Henderson had obtained the books and had marked them as Ids own while belonging to another man. It turned out to the satisfaction of the citizens that this was not so ; that this hi wyer, though a brilliant man, was very unfortunate, and killed himself drinking, and he would sell books and other things to get money. I am more anxious in tLiis ])ublic way to do justice to Colonel Henderson, because I did him injus- tice at that time. Q. He was an officer of the Freedmen's Bureau f — A. Yes. sir; he was, immediately after the war; in my town. Q. Of course that created a prejudice against him among these peo- jdef — A. It created a very strong prejudice at that time, inuiiediately after the war, in consequence of the hates and strifes engendered by it. Q. This charge about the mule, ifzc, occurred just about that time ? — A. A little after that time, I think. In 1808 the indictment was found. In the testimony there was not one particle of evidence, exce[>t that Da- vid Heuderson had purchased the mule from the man who really had stolen it. Q. I neglected to ask you if Colonel Henderson is not now a prac- ticing lawyer in Lexington ? — A. He is. Q. Does he stand fair with the bar and court ! — A. Yes, sir. I desire to state this : he is like a good many other men ; he has improved in his morals and manners in the last ten years. He is now a member of the church, and I have heard nothing against him since. Q. Are you acquainted with Dr. Mott '? — A. I have been acquainted with Dr. Mott for the last ten years. I have met him from time to time for many years, but have known him Aery well foiten years. He lives fifty miles from me. Q. Do you know his character and reputation in the community in which he lives ? — A. I think I do. Q. Please state what it is. — A. It is good. Q. Is it esi^ecially high? — A. I will say that Dr. Mott stanarticularly. I suppose it is political feeliug. 1 ju(lj«e others by myself in this respect. I have no personal feeling' against anybody; but in politics we make things very hot in jny country. Q. You have heard Dr. Mott's ijolitical enemies sj^eak of him, and sometimes his personal enemies also? — xl. I have heard i)olitical op]>o- nents speak of him. I would not undertake to say that he had any per- sonal enemies. I don't know how that is. I have heard political ene- mies speak of him — very strongly against him i)olitically. Q. I)id they assail his character? — A. Not at all; they speak well of it, and of him as a citizen. Q. They all speak well of his character as a citizen and as a man of integrity and truthfulness? — A. Yes, sir; but that he would stoop to conquer in politics, and he was bound to win in some way, and was in- cessant in his labors in that ]iarticular. Q. You were a member of Congress before the war, were you not! — A. It is far back to go, but I was a member; a young man then. Q. You were a member of Congress since the war? — A. Yes, sir. Q, You were also a member of the Confederate Congress? — A. 1 was. Q. During all which time you lived in that section of the country ? — A. I have lived there since 1 located as a lawyer. I was raised within eighteen miles of where I settled — in Lexington. Q. That is the reason why we ask your opinion as to the character of these gentlemen that have been assailed in one way or another. I will now ask you the character of Mr. \Y. H. Kestler, of Salisbury ? — A. If it is that which regards a majority of men speaking of him, I don't know his general character; but if it is divers people speaking of him in his town, and the impression made upon me, I can speak of his character. Q. \Ye have not conlined ourselves to the rigid rules of a court of justice, but much latitude is allowed in this investigation. You know, of course, what questions about the general character of a witness are asked in court. — A. Hence I made the remark I did. Q. State your estimate of the man and the estimate in which he is held by many of the leading men in the community of Salisbury. — A. I think it is low — very low. Q. In what respect? — A. I heard quite recently that he was reputed not to bo an honest man. He came from Concord, and that report reached Salisbur3\ It is rumored he went into the war on that account. I heard that repeated again and again, and I heard several of the citi- zens of Salisbury speak of it. Q. Of what? — A. That he was charged with stealing or trading with negroes in the days of slavery, one or the other, 1 am not certain which ; 1 have heard it both ways. I think his character is generally bad. Q. Wliat is liis business in Salisbury? — A. He had a bar there of ratliei- low rei)ute. i}. A man necessarily is not of bad character because he keeps a bar? — A. No, sir. Q. IJai-H arc kept in different w^ays and different sorts of men keep them? — A. I ha\'e Iieard tiiat he liad some trouble with his wife and a separation ; that tlieic was bad conduct on the part of botli of them — imiiioialil ics. (^. Von say then lliat liis cliaractc^r in tliat community is low? — A. It is; I have licaid souk; of llic leading citizens say that it is wcu'se than I liave staled. (). Soni(^ of tiie heading cili/cns re]»resenled it as worse than you have sl;it('aarty, and they are presumed and sup- l)Osed to advocate the princii)les of that i)arty. Q. Was there not more than a presumption in that case' Do you not know that they did '! — A. Yes. sir; the i)resum])tion has btien made a fact. Q. By their conduct do you not know that it "was generally under- stood and charged that all the oflicers belonging to the departnuuit are assessed for the puri)ose of bearing the ex[)enses of the political (;am- l);ngns'? — A. 1 do not know that. I know that a great deal has been said about that. 1 have heard a great deal of it in the i)ast. I have no ])ersonal knowledge that they do so, as to subordinates. Q. 1 will ask you if it was not so understood in the community? 1 did not ask your personal knowledge about it. — A. Yes, sir. It is un- derstood. You asked me if I knew, which surely meant personal knowl- edge. (). And that they got up public meetings, attended conventions, and were active members of the party, from the collector down to all of his subordinates. That is so understood, is it not? — A. They are regarded as active mend)ers of the party. I have lu) ])ers(mal knowledge, nor do not know that I have it by rumor, that they get up public meetings, but you always tind a fair i)roportion of them in conventions, and I think that they are partisans; everybody knows that, I suppose, or be- lieves it. Q. Do you think if they had collected the revenue (juietly, and ab- stained from open partisanship in the execution of their offices, that the people would have ]>aid their taxes more cheerfully, and there ^^'ould have been a better state of things; I mean in the sixth district ? — A. I think there wouUl, because I think they are doing all this a great deal better now, and the people are becoming more reconciled to the system. I want that to apply to the early portion after the war, for I do not know that there has beeu any bad feeling for some years, or much in- competency of subordinates there. I think there has been a marvel- ous im])rovement both in the state of public feeling and in the char- acter of the subordinates. Q. And in the behavior of the officers"? — A. Y^es, sir; I think so, though there Avas, and has been from the outset, an opposition and feel- ing against the internal-revenue laws. Q. That is not contined to any one party; that is general? — A. I do not know. I cannot say as to parties, but I suppose so. I must say, with due regard to candor, that our Democratic friends have been somewhat active in stirring up that feeling. Q. I will ask you if recently the Republican candidate for Congress- man -at-large, Mr, Dockery, has not dechired himself for the total aboli- tion of the revenue system ? — A. I do not know, sir. (}. Have you not seen that in the papers? — A. I have not seen it. Q. Ha\e you not read his letter ot acceptance? — A. I have not. (}. 1 asked you that question with a view of showing that the oi)i>osi- tion is not contined to one party. — A. 1 was aware of that. Q. I will ask you whether the patronage of the revenue department lias not been used for the purpose of corrupting the young men of the State, by giving them positions, and then getting them to vote the Re- publican ticket? — A. I could not answer the question in that way, be- cause I should have to say they had beeu corrupted, and this 1 ca)inot r>ositivelv sav. 278 COLLECTION OF INTERNAL REVENUE IN Q. Answer it iu your own way. — A. I will answer it in this way : I think that offices have been given to i^ersons whose affiliations were Demo- cratic, and that oltices, or some other consideration, have made them advocate the princijdes of the Hepnldican party. (^>. In other words, after getting the offices they become Republicans? —A. Yes, sir; they may have become so before. I do not know but 1 have heard reports to that effect ; that getting the offices changed them. Q. I will ask yon if it is not commonly understood— perhai)s you per- sonally know in some cases— that men were indicted in the sixth dis- trict for violation of the revenue laws, and were permitted to escape on payment of the costs, and afterwards turned out to be Republicans ? — A. I have heard rumors of that sort, but have no knowledge of them, and would not attempt to give an opinion about matters which I do not know and have not knowledge enough through others to express an in- telligent opinion upon. Q. You have heard such things? — A. I have heard such rumors, but it has not amounted to reputation generally. Q. Could you give the names of some parties who had thus been transmogrified? — A. Ko, sir; I do not know of a single instance. I could n()t give a case of transmogrification. Q. Do you know a gentleman in Iredell County by the name of Jim AYilliams? — A. When I was running for Congress, I think I knew that man. He is about fifty years of age. I think he lived in the northenii part of tlie county. I remember such a num. Q. Do you remember his case? — A. I do not. (^. lie was indicted for blockading, and was a furious Democrat, but came out a furious Republican, and ran for the legislature afterwards"? — A. I did not know he ever ran for the legislature. By Mr. Pool : Q. Y'ou are a Democrat yourself in politics, are you not ? — A. No, sir ; I never was. 1 am a Whig, and so known to be. Q. You were sent to Congress as a Democratic nominee in the State ? — A. 1 was a Whig. I never have been anything else. I never intend to be. Q. When last in Congress you were nominated by the Democratic party of the State, were you not? — A. Yes, sir; but I ran as a AYhig betbrc the war. i). I am speaking of since the war? — A. Yes, sir; the Conservative ]»arty nominated me; Demociats and Whigs. (}. Ilaxe you ever voted the lv('i)ublican ticket? — A. Xo, sir. Q. You s])eak of rumors around in oi)position to the character of the rex'enue ollicials, «S:c. ; do you know that it was made a |>oliti('al hobby in canvasses there? — A. 1 have said as much, and I want to add there, that J have not only not made a si)ee(;h against the internal-revenue law, but hav«} denounced others for making them on the stump, when I was going around as an elector of the State at large. (}. vV It hough you have affiliated with the Democratic party, you are a fail- man ? — A. J do iu)t undertalce to say that of myself. I try to bie a Just man. (}. That is the reason youaieon the stand. — A. I do not say that: but I ha\e iiexcr allowed myself t(> denounce the revenue law in my life. I hav<' denouneed (ttliers who opposed it, because I thought that the laws of the land should be adiiiinislei-ed and that that matter or system could 1m' iiii|tr-o\ ('(1 without denouncing it cii ma.s.sr, and that its abuses could Ite ecdieeled. THE SIXTH DISTRICT OF NORTH CAROLINA. 279 Q. Do you know the other Democratic speakers generally have done so ? — A. I know a great deal of it was done. Q. Were those denunciations very sharp and violent? — A. Very severe. Q. Were they denunciations as to the character of the officers ? — A. Of their character, ami calling them a number of ridiculous and odious names. Q. Were they denounced as "thieves"? — A. Yes, sir; that was a very common expression. Q. And oppressors of tlieir own people ? — A. Yes, sir. Q. Eating out the vitals of the people ? — A. Yes, sir. Q. Appropriating the money to their own uses ? — A. Yes, sir. Q. Instead of paying it into the United States Treasury ? — A. All these denunciations were made. Q. The law itself was denounced, was it not? — A. Yes, sir; but its abuses much more. Q. This was general on the stump and in the public news[)apers, was it not ? — A. It was. Q. And you thought it was wrong, and rather denounced the men who did it ? — A. I thought so ; I was between these extremes, planted there, and meant to stay there, and am still there. Q. Did not that have the tendency to obstruct the execution of the law ? — A. It had that tendency, but it tended, also, to lessen its abuses, in my oiiinion. Q. To resist the authority of the men to whom was committed its ex- ecution ? — A. Unciuestionably. Q. Did not that necessitate more severe measures than otherwise would have been necessary in the execution of the law ? — A. That must have been the effect. Q. You say that shortly after the war there was not so good a class of officers ? — A. j^o, sir ; there were many bad ones. Q. Was it not difflcult at that time to get officers to execute such a lawf— A. I cannot say that; possibly that was so. The best men were not selected. In my opinion they might have done better. Q. Do you remember Mr. Wiley, the predecessor of Dr. ^Nlott, when he went out of office ? — A. Very well. Q. What w^as the date of that ? — A. When he went out? Q. Yes. — A. I suppose 1875, '6, or 7. Q. AVas it not about 1872, or '3 ?-A. Mr. Wiley ? That is so, 1873; 1 was mistaken as to the date. Q. After 1872 did an improvement set in ? — A. Very great, sir. Q. Has that improvement been going on ? — A. That improvement has continued under Dr. Mott's administration. I state that as a fact. Q. It has been getting better and better all the time? — A. Yes, sir. Q. Very greatly better than it was before ? — A. Very greatly better than it was. Q. Then you think Dr. Mott as an officer has successfully improved, the service, and in doing so has improved the general feeling of the com- munity with i-egard to it ? — A. Very greatly, and I can give my reasons for it. In canvassing through that district I looked into that matter, and determined never to denounce individuals, but I did all I could to get a better set of officers, anarty politi<;s? — A. They certainly do. Q. Do you think the fact that because revenue officers take an active part in furthering the interest of their party that that was any justifi- cation for denouncing the law aiul its execution or individual officers as "thieves," "oppressors of their ])eople," eating out the substance of the communities, and all that sort of thing- ?-^A. I do not, and I have said so on the stumj) and in private, because I have not held any ex- treme views on this or other subjects. Q. The question w;is i)ut to you whether ai)pointments in the revenue ser\ice were used as instruments for corrupting DcnuH-rats and making- them tiii'ii over to the Uei>ul)lican jcirty? — A. That ut to you in that way. 1 know how you answered it, but^ 1 Wiint to ask this: Is it unnsual in ])olitics lor an appointment to be sometimes ma(h', tofnrther tiie interest of political parties? — A. 1 think among politicians they are generally so made, if (hey can utilize them in all ]»ai-ties. (^. If th(\v appointed a man who was a little. shaUy on the opposition Hi«hi for the purpose, of making him a little more shaky, or of making him eoiiie i>ver? — A. HnvM is the rule of both ]>arti(^s in the politics of iii.\ ••oiiiitry. (^). 1 1 IS this been picssefl to aii>- iiiDre e\cessi\-e degree in this dis- THE SIXTH DISTRICT OK NORTH CAROLINA. 281 Uict than is customary in others ' — A. \V(^ll, sii', Dr. Motfc is so active a i>oliti('iau that to that extent it may liav(! bet'u used ujore. He is so hard a worker, and I judi^e by results. Therefore, I cauuot answer itiu that way. There has been more work there tlian in other districts. Hence, I judiie by results, and results show more has liecn done in his district. Q. Yon do not know tli;it it has been .' — A. I do not know jiositively that it has been. Q. You only know it tVom the results' — A. Th;it liiss foinied my o])inion, as explained, Q. These results show that amongst other things hi? has increased the strength of his party in his district? — A. He has the credit for in- creasing it more than he really did. In my opinion, for reasons very o.bvious to nie, Mr. Eobbins, the tormer candidate and niend)er of Con- gress, increased the Democratic strength th«u'e, for, though he was a pronounced Democrat, he got quite a number of Eepublican votes, and ran his vote up to a large nmjority ; and I thiid<: the basis of calcidatiim for the increase made by Dr. Mott is due in part to the (U'crease conse- quent on Mr. Robbins's defeat for the nomination. Q. You mean that he has decreased Mr. llobbins's strength 'I — A. 1 mean Mr. Kobbins's increase has not been kept uj) by his successor. Q. Well, Dr. Mott has been suc(;essful as a revenue ortlcer in making- au improvement iu the service and the public feeling in regard to it ; and has also been successful as a party manager and [)arty worker? — A. He is a liard worker and au active stalwart Republican, working all the time. Q. Did yon think that that justitied the violent and excessive denun- ciation of revenue ofhcers by the opposite party? — A. I do not think they all do it. It is only in' degree. These eiforts of the parties are €ommon, and it is only iu degree. Some men work more effectively than others ; they have nujre talent, more organizing and administra- tive ability. Q. Do yon not believe that the dis])araging' reports and rumors against Dr. Mott in that district, and his officers, are put forth by Demo- cratic politicians for the pnri)Ose of breaking down the effect of Dr. Mott's work in a political way? — A. I think so, by some ; I would not undertake to say that it is universal. I am satisfied, and can give reasons why these things seem to have arisen to break the force of his intlnence. Q. Is not all this cloud of slanderous reports npon him and his sub- ordinates in that district, really political and partisan in its character f — A. I must modify as I did before. I think it is to some extent. I feel bound to say that. Q. Would you say mosthi f I am Speaking of Dr. Mott's adnunistra- tion, not Mr. Wiley's. — A. 1 .say the case was being prejudgennce the law, did they? — A. No, sir; I could not say that they all (lid, thoiigii some did. (). I>ut they denounced the manner in Avhich it was executed, and so did y«Mi '! — A. You know very well that 1 avoided a denunciation that would lend to affect the administration of the revenue laws, and I a\()ideeaking of fhe state of affairs a little after the war. There was a v«'ry distnil)elie mind then, was there not? — A. \'ery griiat. 1 looked upon it as one of the imme- diate eoiK'oiiiitants of the war. THE SIXTH DISTRICT OF NORTH CAROLINA. 283- Q. As far as yon know, it would have been a little difficnlt nnder the circnnistances, Jnst at that time after the war, to secnre the services of the very best men residing there to carry ont and administer the inter- nal-revennelaw. Was there not a pnblic sentiment really against them ? — .\. There was a very stron.u' pnblic sentiment ai)osite party, a disi>ositi()n to seize npon and make nse of all these things, in the way of dennnciation, not only of the otti- cers whose eharaeter might have been nnfortnnate, bat of the adminis- tration of the law generally; whether that was not used with avidity by the politicians? — A. I have said this much in substance with qnalitica- tion — only (inalified it in attempting to protect myself, though the abuses were much more denounced than the law; for I had tried to avoid it.. My views are well known by every intelligent and honest man in the State. Q. Kow, in view of the condition of affairs which seems to have been almost unavoidable at that time, I ask you if yon did not regard the improvement with reference to tlie feeling in the public mind, and the feeling of the ])ublic generally with regard to the revenue law, as very remarkable '! — A. 1 think it is remarkable and wonderful. Q. I understood you to say that it has been very nnich improved dur- ring Dr. Mott's administration ? — A. Very greatly so; and I think dur- ing the administration of the other revenue ofiicers of the State. I d(> not hesitate to say that I looked into it with a view of striking at the system where I could without any bitter or unmeasured language; but in such a way as would reach the hearts and minds of the people. Q. You have been very long in public affairs. Is it not a fact in the best cojnmunities where there has been no disturbing cause there is a natural antipathy and objection to any kind of revenue collecting ? — A.. It has been so since the foundation of this government, and I suppose it will continue unquestionably, for taxes are a sensitive thing. The pocket nerve is very sensitive. Q. Is it true, as a matter of history, that up to this time there had been a general avoidance of the collection of internal-revenue taxes for the general government? — A. Yes, sir; much avoidance. Q. So it was naturally an obnoxious matter to the people ? — A. A^es, sir; there was a great deal of feeling against the government, and avoid- ance of the payment of the taxes in the early i)art of the system. Q. Is it not true in the sixth district, that that violent resistance to the revenue laws has abated, as the years have progressed, so there is less and less violence and bloodshed? — A. Yes, sir; there is very little violence, and very little bloodshed, and it has very greatly improved. The people have become habituated to the administration of the law. There are better officers, and unquestionably better subordinates, and the system is more tolerable. Q. Would you not also regard it as excellent policy — I am speaking now of political policy, or of governmental policy — if it was found that one party was establishing itself in this way, and as a remedy against this, if the collectors and persons having the appointment of subordi- nates, should try, if possible, to secure men from that party which in some measure had the best men in it ? — A. I should think it would have that effect. Q. And you would not call that corruption of the men appointed, but a proper action on their part? — A. That is what all parties do. That is 284 COLLECTION OF INTERNAL RE^'ENUE IN the idea. 1 know of iudividuals changing-. I did not, and as my good- tempered friend Governor Yance looked at me as a Democrat, it was simply due to the fact, that in twenty-eight years of public service I had lieen known as moderate in my views. I have denounced my opponents, but among the masses of the people, I have appealed to them in the light of reason, and have stood between those extremes in all my i)ublic life; and my historic as well as journalistic career will prove that to a com- plete demonstration. Q. Would not that have been a very natural result, that, some i)er- sons who were appointed to suboidinate positions, and were formerly Democrats, mostly from what they heard in public speeches, and seen in the public press regarding the internal revenue — if they should become administrators of that law and found nothing sinful or hurtful in it that they should change from the Democratic party to theEepublicans? — A. Some men are guided that way bj'^ principle, not oidy througli North •Carolina, but all over the country. T. K. Dayisi sworn and examined for the government. By the Chairman : Question. Where do you reside ? — Answer. I reside in Buncombe County, X. C. Q. What is your age ? — A. Fifty-three years. Q. Have you been in the service, ami for how long a time, of the In- ternal Eevenue Department of the sixth district of North Carolina ? — A. No, sir ; never was. Q. Have you been in the service of the government at all .' — A. 1 have been, as a deputy marshal. Q. A deputy TJnited States marshal ? — A. Yes, sir. Q. How long have you been acting in tliat cajiacity ? — A. I had the same business in 1868 for a while under Daniel E. Goodloe. I was ap pointed a special deputy. Q. How long altogether have you been in the service ? — A. Then I was appointed by Colonel Douglas — I think in 1873; I won't be posi- tive as to the date. Q. Altogether you have been in the service over ten years, have you not t — A. Something over ten years. I did not do very much work for (loodloe. He did not stay in very long. Q. What ])art of the district, or how mucli of the district have you had oc(;asion to travel over during all this time you have been deputy ]narshal '! — A, I have traveled over a good deal of it in the western l)art of tlie district, and sonie in the eastern i)art as far as Hickory in Catawba County, to and in Lincoln, Jiurke County, ]McI^()well County, Caldwell County, Rutherford County, L'olk County, and Henderson County. Q. ilow much of the counties west of the Blue Kidge ? — A. I have done some woik in Haywood County and in Madison, and some in Yan- cey and Mitchell Counties. Q. What are your i)()litics ? — A. 1 .una lU'pMblican. Q. Yon have been all the time'^ — A. 1 never voted any other ticket sirnte the war. (}. Yon arrest i)eo|)le, of conrse, as yon have occasion, and it is re- • inired '. — A. ^'es, sii-. i). Will yon state if yon ever had any dillicnlty in making arrests in ilial connhy? — A. Never. 1 was at one time with a sy divided — either distillers or storekeepers? — A. I do not think I have. 1 have heard it rumored very frequently. Q. You have no personal knowledge on the subject? — A. No, I do not think I recollect an instance. Q. Do you know one R. A. Cobb in Burke County ? — A. Yes, sir. Q. What office did he hold in the reveiuie indivin used ? — A. Very, indeed. (}. \on would beiiave yourself'^ — A. Ves, sir. <^>. YiHi would shake hands with the i)eoi)le and be \ cry friendly with them ? — A. ^'<'s, sir. (}. Anpointe(l. The Chairman. He was a si)eoial agent, though ? Mr. Pool. I want to show tliey were acting for the department, and ]iot for the collector of the district; it was not by Dr. ^Mott's officers this act was done? — A. No, sir; Jiotthat I know of. They were special agents — at least controlled by sj^ecial agents. (). Do 30U know whether that tobacco was rightfully or wrongfully seized ? — A. Only my opinion about it. I thought it was wrongfully seized. Q. Two and a half pounds, you think ? — A. Two and a half pounds. It was what tobacco was in the old lady's loft. Q. Did you think that aggravation of sufticient magnitude to Justify them tiring into the officers of the government? — A. I do not think it was, I think, though, it was a very wrong act : but I thought tlu're was another way of redress. (}. You do not think two and a half pounds of tobacco, taken either accidentally or intentionally, was justification for firing from ambush upon those oflicers ! — A. It would take a very great wrong to justify men firing on a squad of men. Q. In what locality of the district was that firing ? — A. In the York settlement. South Mountains, Burke County. Q. Do ])olitical speakers go into that section and make their speeches? — A. I think so. I never heard but one speak in that country. I never attend i>ublic speaking while on duty. Q. On that occasion were the revenue ofticers denounced ? — A. I think it kind of divided itself into two sides on the reven\ie. They did not have any candidate out that year for the legislature, only the Demo- cratic candidate. Q. You spoke of Mr. Cobb being restored to the service. Do you not know that the only service he was restored to was that of a raider"? — A. What was called a special deputy. Q. .V special deputy t — A. That was what I understood. A raider is a special deputy. Q. What is the duty of these raiders ! — A. Their duty is to go around anil break up illicit distilleries and seize illicit tobacco and any illi<.'ir. traffic that is going on. Q. They have no ])ecuniar3' responsibility, ha\ f they — I mean, they do not liandle the money of the government? — A. I thiidc not, sir. Q. Tliey are cmi)loyed as a sort of police force ? — A. I sup])0se you may term it that, always, of special deputies. 0. And that was th(^ service that Mr. Cobb was em])loyed on. A'oii S]K)Ue of the em])Ioy)ucnt of Mr. Herrn; do you know whether he was ever employed by Dr. jAlott at all? — A. I do not. Q. \'ou said he was emi)loyed by some agents as a special guide? — A. I le was employ(!d as a special guide, I suppose, by some of the special (lej)uties. They \('ry often emi)loy S]»ecial guides. (^. Vuu mean on their raids? — A. Yes, sir. Q. Do you know how they an; paid ? — A. Which, the guides ? (). V<*s. — A. TIm'v make out their claim on l''orm 10 and send it in for service r days so much pay, and tlie (b'])artment pays them. <,>. ^'oM mejin tliey were sent in to the dejiartiiient at Wasiiington ? — A. Sriii ill t<» the ofliee of tlie coMector, and then lie si^ids them through' in the regular eonrse, like an\' otluM" business; don't know <'.\actly. (^, I ulation that it would be quite impi-acticable to do it. After consultation with the collector, whom I found to be a man of good judgment, a fixed policy was adopted of dealing with tiiese offenders, and it was not confined to that district, but was made a general s\ stem in all the infected districts. The i)lan was, first, by vigorous measures, to force violators of the law to the wall, so to speak, and then after they had become satislied of the determination of the go\ernment and its ability to enforce the laws, and had manifested a (lisposition to make ])eace with the government, to extend to them leniency, on such conditions as should ai)peal to the best side of their nature, so as to induce them to cease committing frauds and resisting the ollicers, and to observe the laws and assist in establishing a public sentiment favorable to their enfor(;ement. In all this work, which was a work of time, for you cannot revolutionize a ])ublic sentiment so well settled as tliat in a day — it takes years of patient labor — I found ColU'ctor Mott not only earnestly devoted to the work, but an exceed- ingly energetic man, and possessing all the necessary (lualilieations of mind and will to carry out the instructions that wei'e gi\-en him. The su|»|iiession of illicit distilling, as I ha\'e said, was not contined to that dist liet, but it was a general system, and at times armed forces were organized, extending from Wheeling, W. \'a., almost to the (Julf of .Me.\i<'o, mo\ing simnllaneoiisiy, and C()-opcrat ing for a month or two at a time lor the suppression of theses frauds. Oiu' serious diriiculty was (he insiiHicieneN of the a|>pro]niations. The operations of the govern- THE SIXTH DISTKICT OF NORTH CAROLINA. 293 ineiit were spasmodic, not contiiinons, for (lie want of inoiiey. After tlie spirit of tlie illicit distillers had been pretty well broken, I in;ins'ii- rated a system oi' encourai;iiig' the establishment of snmll lejial distil- leries in all the illicit-distillint;- districts, believin.ii' that the jK'ople who were in the habit of makinji- distilled spirits wonld either make them lawfully or unlawfully, and I tlion,<>ht it was better to authorize small licensed distilleries, even tlioni;h the government should <;etoidy tiveor ten dollars a day from them rather than to have continual turmoil and confusion in trying to suppress illicit distillation. That system originated in my ofltice, and letters were written to('ollector.Arott, simong others, to enter upon the work of encouraging the old distillers to estab- lish lawful distilleries. Q. Yon mean old illicit distillers? — A. I donot say old illicit distillers; of course, some of them Avere illicit distillers, but many of them were citi- zens who were tainiliar with the business; but, at all events, he encour- aged theestablishmeTit of legal distilleries throughout his district. Now, the result of all that has been that the district has been lifted u]) from the attitude of fraud and resistance to anthorit;s' into an observance of the law; and ofticers now can ride from one end of his district to the other, without danger of being bushwacked ; whereas, live years ago, a private citizen passing through that country, with "store " clothes on, and who was unknown to the people, was in danger of being suspected as a revenue ofticer and shot at. I state without any hesitation that Dr. jNlott's administration has been eminently snccessful. He has had a very difticult district to deal with. . He has had to select ofticers from uneducated people, because it is well understood in the western district of North Carolina, the people are not as highly educated as in some other portions of the same State. Here and there have been frauds committed by the officers, and sometimes, I h ive no doubt, there have been excesses of authority, bnt taking the district as a whole — and I judge it in that way — the improvement is very nuirked; and the whole of it has been brought about by the administration, skillful judgment, and integrity of Dr. ]\[ott. And I make this statement without any i)artisan bias in his favor, but simply as an officer who has watched his course for six years, and feels that he is entitled to the approbation of the government for the manner in which he has administered the office. Q. This establishment of stills of small capacity resulted in an increase of the expenses of the collection of the revenue ? — A. Necessarily. Q. And as a matter of percentage that expense would be much larger than it had been before ? — A. As a matter of course, if yon establish 500 small distilleries, where the capacity ranges from live to ten bushels of grain i^er day, and put a storekeeper at each of them at -$4 a day, while yon will increase the collections in the district and the govern- ment will actually make money by the operation, yet, still, it will neces- sarily result in a large increase of the expenditure for collecting the revenue. That subject was thoroughly considered by me before I direct- ed the encouragement of the establishment of these snmll distilleries. I thought that as a choice between a system which would result in secur- ing some revenne peacefully and quietly, and a system which was pro- ductive of fraud, resistance to law, and bloodshed, I could not hesitate. And taking the resnlt in all these districts, from oneeud of the country to the other, to-day I can say we have a peaceful observance of the law as a result of this system of administration. It is fair for me to say in this connection that this subject has been constantly brought to the attention of Congress in my official reports, and I have time and again discussed the subject with both committees 294 COLLECTION OF LXTERNAL REVENUE IN of Congress on ai)i)ro]»iiations, and the wliolo thing has been done on the approbation of the Secretary of the Tn^asury. Q. Did the system meet with disfavor from the committees of Con- gress? — A. Tbey have always appropriated the money, and there has been no legislation looking to the abrogation of the system. Tlie fact is, it stands as a law, fur a man has a vested right nnder the law to estab- lish distilleries of this kind. Q. A good deal has been said abont the very large ineroase in the ex- penses of that district, -$05,000, 1 thiidv, was the snm named by some of the witnesses examined, as being expended in ISSO, or along there. If yon can say anything on that snbject, I wish yon would state it. — A. 1 can turn to my report and show the whole o])erations during the ditter- eut years. You will understand from what I have already staled that when we got this system in motion there would be two sources of ex- penditure. One would be for the em])loyment of men to (continue the work of repiTSsing illicit distilling, the other for the em[)loyment of storekeepers and gangers at the small registered distilleries established. I deemed it necessary to keep up a very considerable force of men over that territory to police from i)lace to place in scpiads of from 5 to 10 or 15 men, as tlie necessity might be, so as to prevent the re-establislnnent of the illicit distilleries that had been broken up. Then, as these legal distilleries were started, their establishment involved the necessity of appointing storekeepers and gangers to be assigned to them, and, of course, that wouhl increase the exj^enditures; but it iimst be kei)t in view tliat while the expenditure has. largely increased, the revenue has largely increased also, and no distillery was ever started that did not l)ay its way. Q. It was alleged in the public prints, and I do not know but upon the stum]) by speakers, that officers collecting the revenue in that dis- trict would send what they pleased here to Washington and keep the balance, and appropriate it to their own uses or to political purposes. Was it possible for that to be done I — A. The great bnlk of the taxes collected through the internal revenue system is received from the sale of stamps. When you collect a thousand dollars, it means you have sold about se\'en thousand stamps. The only taxes that are collected otherwise are upon assessment lists. These consist of taxes on banks, l)enalties inllicted, »!vc., but such assessments would constitute a very small percentage of the taxes that were collected in Dr. Mott's distri(;t. If a n)an establishes a distillery and gives a bond, a storekeeper is assigned, and the operations of that distillery are conducted so as to finally get the whisky into the government warehouse. It cannot come ont of that warehouse except by payment of the taxes (and those taxes are i)aid by the purchase of stamps), unless it is stolen, and, in that <;as«*, the government has a claim upon the bond, and that is pursued in the courts. (}. I undcu'stand thai lli<' collections are paid into the Treasury here, and not into your oflice ? — A. Not into my ol'lice. They are deposited from day to day. (.}. Deposited here ' — A. No; the system is to have the c(>lleetor de- l»osit in a goNcrninent depository. There is a government (iuires that all the (;ollections THE SIXTH DISTRICT OF NORTH CAROLINA. 295 shall bo put into the Treasury, and that the expenses shall be drawn out of the Treasury and disbursed by the collector. 15y Senator Mitchell: Q. ITnder the terms of his l)ond is he not required to deposit his col- lections ? — A. Oh, yes ; that is the law, and the regulations, and the bond. By Mr. Pool : (}. The expenses of the district are allowed by the bureau here ui)on allowances adjusted l>y 30U, are they not? — A. Yes, sir; under the law, the Secretary of the Treasury, upon the recommendation of the Commissioner of Interinil IvCA'enue, nnikes an allowance fixinj;' the sala- ries of all the subordinate olhcers. A monthly estimate, coverin<>' the amount of these salaries, is made by the collector and forwarded to my office. I make a requisition for a draft to cover that monthly exi»endi- ture, and the draft is issued in favor of the collector of internal revenue and it is forwarded to him, and of course is passed to his credit in the bank where he has his deposits. Q. It was simply to negative the idea put abroad that they paid these ex])euses from the money collected along? — A. That was the case many years ago, but it has not been the case for a considerable length of time. Q. How long is it since the law was changed in that respect? — A. The change in the law in this respect went into effect the 1st of Julv, 1805. Q. It has been given in evidence here that the storekeepers and gan- gers frequently assist distillers, who are ignorant men, as is shown in most instances, in making up their attcounts, and rendering them assist- ance in their V)usiiiess, and that sometimes they would complain of the storekeeper, that he would not do that, making a complaint to the col- lector, and asking for changes ; anrobable that Kome i>l' these storekeepers did di\ide their ])ay with the distillers. (). J'.iit you ha\<' not heard of an instance, of it, liave you? — A. I tltought I had loiiiMphat out in the r)th district. (}. r.ut in the Oth ?— A. I do not recollect that Ave did in the Oth. I ]>ut in writing, and ijioic lre(|iientl,\ by word of mouth, a warning to all THE SIXTH DISTRICT OF NORTH CAROLINA. 297 the collectors in these districts, "I^'ow you are dealing with a lot of iiioii who have been in the habit of defraudino- the ft'overninent by operating illicit distilleries, and it is not to be snpposed that their sentiments were revolutionized in a minute, and yon mnst watcii and see that they do not defraud the government through the means of a legal distillery/' We have been struggling to prevent that. To a very large extent the people who operate these distilleries are doing so honestly. Q. Of course, that ai>plies to the (!th district as well as to others? — A. Yes, sir; and then there is this nnirvelous improvement — that tlu'y are 0}>erating peacefully, and there is a growing sentiment among the i)eo- l)le in that district in favor of the observance and enforcement of the laws. Q. DidDr.Mott diligently carry out yourinstructionsin thatrespect '? — A. Yes, sir; 1 think he did. Q. Are you able to speak of the personnel and character of the sub- ordinates of Dr. Mott in that district ? — A. I have never visited Dr. Mott's district in person. Q. I mean from the reports. — A. I am not personally acquainteort it. 298 COLLECTION OF INTERNAL REVENUE IN Q. Have yoa iiot frequently had them to report fraiuLs or irregiUar- ities which, upon thorough investigation, turned out to be mistakes? — A. That question is so general that I could scarcely give a proi)er answer to it. Q. I do not know about your officers; have you not reports frequently come to your office of irregularities which, upon investigation, were susceptible of explanation, and turned out not to be as reported ? — A. That of course will happen sometimes in every office, however, and the agent may report irregularities of an officer, and upon further investi- gation of the subject it may be found that the recommendations that are made by the agent may be too severe, and they are not always fol- lowed. I liave made it an invariable rule not to act upon the report of an agent as to the dereliction of a subordinate officer in a collector's district without referring the report, either in full or in substance, to the collector for his examination. A collector of internal revenue is an officer created by law, who is appointed by the President and confirmed by the Senate. He gives a bond of ^lOO,!)!)*), and the law imposes upon him the performance of grave duties, and he is subject to pains and penalties if he makes false reports to the Internal Eevenue. And the duty of enforcing the laws is devolved upon him, and I have felt that -although I may have an intelligent agent to make an investigation of an officer, say, of a storekeeper and ganger, or deputy collector, and an unfavorable report may be made ui>on that man — I say I have felt it my duty to refer that to the collector, and have him investigate it and report, and then base my action upon all the facts as they appear. I have pursued that course with Dr. Mott, as collector, as I have with all the other collectors in the United States. Q. These agents sometimes report upon a collector himself, do they aiot ? — A. They are required to report every officer and every tax-payer that tliey tlnd derelict. Q. Aud if they should report irregularities upon a collector, you would investigate it thoroughly, would you not? — A. Oh, yes; I have often .sent out from my office tlie deputy commissioner, the chief clerk, or the chief of the revenue agents to do tliis. Q. There was an instance in this sixth distinct relating to office ex- penses — something of the nature of assessments on the subordinate offi- cers to i»ay expenses. Do you recollect that ? — A. Very well. Q. Will you state about that? Of course, that came to you b^^ report ? — A. Yes, sir. (}. The agent rei)()rted it, of course, to you? — A. Oh, yes; I directed liim to make tlie investigation. Q. A lid from that agent's report you were led to believe tliat there was sometliiiig very wrong about it? — A. 1 was led to beliexe it was irregu- lar, and I told Dr. Mott that, and he stopped it. The amount collected was sometliiiig over $300, it was in little dribblets from various places. As iMott's ofhce grew in importance from the increase in the number of distilleries, it was difficult foi- liim to keep pace, by tlie allowance made with the pressure upon his olllce and his men. I have no doubt they were Acry hard worked. Well, he had some controversy with the bank in re- gard to a (•liecU-b(K)k. That, jnoitably, started the thing. ^Vccording to my recollcrt ion of the report, he lia\iiig three or four hundred subordi- iiat<'s, and paying I hem once a, month by cliecdv, he had to ha\'e a very largi! check book; the- bank at that time declined to furnish the check- book', and he had to buy it, and it was for the benelit of those who re- ceived the money that he collected the ainomit from them. That was the explanation that Dr. Mott made for making this little assessment. THE SIXTH DISTRICT OF NORTH CAROLINA. 291) Tlu' uioiiey raised was used to buy ice tor tlie use of the office, and for various little items — I do not know what now; I have the re])ort at my office. By the Ciiair^ian : (,). We have it here— Mr. Dwire's report?— A. Yes; that is it. I lhoM,i;ht it was irregular and without any rellection on these men as guilty of any fraud. 1 do not think they were guilty of any fraud, but it was one of those irregular things that are liable to subject a nuin to censure and suspicion of fraud. By Mr. Bool: i). Did you not judge from the report that there might have been ex- cesses in this matter of assessing for office expenses? — A. Whenever money is collected in an irregular way and disbursed according to the will and pleasure of somebody it is always liable to that abuse. Q. You had it thoroughly investigated? — A. I had it investigated by JMr. Brooks, a very competent man. Q. Did you find the money honestly expended and really no dishon- esty about it? — A. AYell, 1 stated how they had gathered the money for tliese little expenses. It was probably about $300, including the con- tiibutions of the office force, and they have expended it in various little ways; this check-book was one thing, costing $18 or $20, and ice, &c. (v>. They paid a messenger also? — A. Yes; there may have been a messenger i)aid, but then you have that all here. ' Q. I want to know if you had any unfavorable impression in regard to Dr. Mott after you had investigated it? — A. I had no idea that there was any fraudulent intent about it. If I had I would have recom- mended his dismissal; but it might be proper for me to say that I have been told by collectors and chief deputies and others that they frequently liad to buy their ice and raise a little contribution in the office for vari- ous little comforts, and of course I have no objection to that. Q. Y^ou are not positive that there was any item for ice ? — A. I do not know that there was. It has been now two or three years since I saw the report, and I examined it very carefully at that time. Q. You addressed a letter to the subordinates of Dr. Mott inquiring if he was indebted to them ? — A. Y'^es, sir. (}. When was that letter addressed to them? — A. I cannot give the date now ; I will furnish the date. It was several months ago. Q. Did you receive answers from the subordinates ? — A. I received o\er 300, I think. Q. Were they satisfactory ? — A. And I have been called u[)on for copies of them, and am having the copies made. Q. Y"ou had the answers examined; were they satisfactory ? — X. Y"es; I think I read the most of them. So much had been said derogatory to Dr. Mott by various people who had visited my office, charging him with having received money from his subordinates, or withholding money from his subordinates and keeping their salaries, that I concluded that I would see what these subordinates had themselves to say about it ; and so I addressed this letter to between three and four hundred per- sons. Forty or fifty of them had left the service, but I went back to a certain period and took those on the rolls from that time down. And we got replies from almost all of them, and those letters are such an in- dorsement of Dr. Mott as I think would justify his appointment as min- ister to England, or nominate him for Congress, or something of that kind. His subordinates indorsed him with wonderful unanimity. 300 COLLECT^OX OF INTERNAL REVENUE IN Senator McDill. Those copies will be offered in answer to this mat- ter? — A. Yes, sir. Mr. Pool. We propose to do that. Q. It has been charged that they followed a certain form of answer which was ])repared for them; did yon detect anything of that sort in examining the letters? — A. The letters were all prepared in one day, the day that I sent them out. I will give you the history of it. 1 diiccted the chief clerk to prepare a letter. Dr. Mott knew nothing about it. In fact I will state very frankly that Dr. Mott felt greatly agg•rie^■ed at my sending out such a letter. He knew nothing about the preparation of that letter. I sent this letter to the various post-office in the thirty- four counties where these men lived, and within three or four re- scribing how he shall pay them? — A. No, sir; there is no regulation that they shall pay them by draft. It is usual to pay them by draft, because generally the depository is in the town where the office is situated — that is, with most collectors — and they simply give a check on the bank for the money. The storekeepers are paid in the same way. Q. Your present answer would be that this is a matter of convenience with the collector, and not one of regidationsf — A. Yes, sir. The vouchers in the way of the checks that are given by the collector to the officers are not sent here. He takes the man's receipt and forwards that. He retains the check. Q. The check, if kept by ariybody, is kept by the bank ? — A. The col- lector in settling with the bank gets his check back. Q. Certaiidy. Is it permissible and lawful for a man to draw double pay — as a deputy collector and as a ganger, for instance ? — A. Xo, sir; we do not aim to have a man draw double pay. Q. If he draws full pay in one capacity, and does work in another, can lie ay to officers? — A. Ithinkuot. Q. Would the Comptroller adjust an account with double pay for a man, if he knew it ? — A. Up to a certain period of time — the date I can- }wt give without reference to papers at the office — I think that Comp- troller Tayler held that where a man held two commissions, the double compensation for which did not exceed $-J, 500 and he performed the duties of both, he could draw that pay. That is my recollection. Q. Now, on 3Ir. Taylor's ruling, if it did exceed $2,500 he could not? — A. He could not. Not long before Mr Taylor died, I had a dis- cussion with him about that, and I think that was his ruling up to a certain time, and Congress then stepped in, and passed some law upon the subject, and we have now sections 1764 and 1765, which constitute the law of the case at this time. (i. Do dej)nty collectors make out what are termed "Hiary Eeports,'^ showing wliat tlu'y have done every day? — A. They do now. (}. How long since tiiey have been com])elh'd to do so? — A. It is ix'cent ; w itiiin the hist four oi- live yeai's. it was an invention of mine. 'I'lie old foiiii (!.'> did not contain these. It was just siin])ly an account. U was ill the year 1S77 or 1S7ably. I know it was ado])ted dur- ing Mr. Taylor's achiiinistration as Comi)trolIer, as I adoi)te(l it after consulting with him. (). Ill icference to the diawingof double pay, I iind the ibllowing law, w hich seems to have been on the statute-book in the year 1842 : Skc. ITdf). No ofliccr in jiiiy braiicli of the |nil)lic .scrviro, or .'uiy other ]>('rson wlioso Haliiry, l>iiy, or ciiioliiim-iitH arc lix<iil)lii' iiioiH'y. or lor any othrr sfr\ ice, or (Inly \\ liatcvcr, niilcss the same is :iiilliori/.<'(| liy l.'iw, :iii(l the a jipi'oprial ion tlicrclor cxiiiicil ly states lliat it is tor sncli aildit iotial pay, extra a How .mee, or eonipt'iisal ion. THE SIXTH DISTRICT OF NORTH CAROLINA. 303 I A. That, I would say, relates to the particular office lie is lioldinj;-. That says "no officer'"' shall do so — receiv'e extra pay aud extra com- pensation, s we do in our ottice: he states tlie account and sends it forward to the First Comi)troller with a certificate tliat lie found such an amount due this man. Q. Tlien what d(>es the First ('omi>trolh'r do? — A. Tlie First Comp- troller has men assigned to the internal-revenue work; and when that account reaches the First Comptroller it goes to that division of his oflice; they examine it with a view to ascertaining, in the tirst place, whether it conforms to the allowance, and in the next i)lace whether there is an ai)proi)riation under whi(;li the account can properly be au- dited and paid; and when they find the account in acconhmce with the law they settle it and it goes forward then as proi)erly credited to the collector of internal revenue, who acts as disbursing agent. You know that is not like passing the account for a warrant, because the warrant has already been issued to the collector, and he has drawn the money and has it to his credit; but it is passing an account to carry to the credit of the collector on his disbursing account. By Senator McDill : Q. So as to know what balance is unexpended? — A. What is unex- pended; yes, sir. By the Chairman : Q. I want to know if each department through which it passes does not make some mark or stamp upon it to show that it has passed through that department? — A. The practice in my department now is to have every paper, of every description, stamped on the day it is re- ceived. That is the first thing, and then where it is uecessary to make any notes or comments on it this is done. Q. It bears some mark that it has passed through that office? — A. Yes, sir. Of course it is possible for a paper sometimes to miss, but this is very rare. Q. I see, now, an account here, for instance, a voucher of W. H. Kest- ler, dated January, 1873, with a stamp on the back of it; what is that, can vou say (handing paper to witness) ? — A. That is the Fifth Audi- tor's Office, May 12, 1873. Q. There is what is called an amended voucher for the same man, reducing the amount to $05, &c. ; I will ask you if there is any office mark on that similar to the other (handing paper to witness)? — A. (Ex- anuning). No, sir ; I do not observe the stamp of any office upon it. Q. Or the initials of any clerk ? — A. Tliere is no stamp on the amended. Q. Now I will ask you to look at the date of the amended voucher, and say what it is ? — A. The amended voucher purports to be sworn and signed the 11th day of September, 1874, before J. M. Horah, clerk of the superior court. Q. Will you please look at the Comptroller's certificate of adjustment attached to the same; what date is that ? — A. The stamp of the Fifth Auditor bears the date of May 12, 1873. Q. That was when he adjusted the account ? — A. That is when he sent it forward to the First Comptroller. Q. Do you see the Comptroller's certificate, and what date that is ? — A. This certificate is dated June 2, 1873. Q. Are you not mistaken about that ? — A. No, sir. Q. What do you make that, down there (indicating) ? — A. I was look- ing there. S. Miss, lie 20 30G COLLECTIOX OF INTERXAL REVENUE IN Q. You are on the wrong paper? — A. No; tliat (indicating) is the Comptroller's Office, and this is the Auditor's. This is the Comptroller's, dated June 2, 1873. Q. The Fifth Auditor's report is made May 12, 1873, and the Com])- troller's is June 2, 1873! — A. Yes, sir. Q. Nosv, inasmuch as that voncher was sworn to, at what date was the amended sworn to in 1871? — A. Sei)teml»er 11, 1874. Q. That being so, that voucher could not have been present when the Auditor and Comptroller adjusted that acconnt, could it? — A. 1 should say no. Q. I will ask you to look the rep(>rts over, and say if the same can- not be said of these other vouchers that pur[)ort to be amended. I will ask you if this amended abstract bears any marks of the office showing the date when it was received at your office (handing Exhibit 13 to wit- ness) ? — A. (Examining.) No, sir; it does not. Q. State when it purports to have been sworn to — on the opposite side. — A. (Examining.) September 21, 1874. Q. So it could not have been i)resent when the Auditor and Comptroller adjasted the account? — A. I think not. Q. I will ask you just to glance at these succeeding vouchers, and say if they are in the same position. This one for the succeeding quarter from January 1, 1873; does the abstract put in any other showing, show- ing when it was received in your office? — A. No, sir; there is not. Q. And when was it sworn to? — A. It bears date September 21, 1874. Q. The same as the other amended abstract? — A. Yes, sir. Q. Now, when does the Auditor's and Comi)troller's certificates ap- pear upon it? — A. The Fifth Auditor's Office, June 10, 1873; the First Comptroller's Office, July 7, 1873. Q. Will you look at the original abstract, if you please, that you have in your hand, and read over the luimes of the deputies? — A. (Witness, reading compensation account. No. 0875.) J. A. Eamsay, W. P. Drake, and W. II. Kestler. Q. Will you please look at the amended abstract and read the names there of the deputies? — A. Ramsay, Drake, and Walker. Q. Kestler's name does not appear ? — A. Kes tier's name seems not to apjtear. (}. Will you please look at the vouchers for the quarter ending the 30th of June, 1873, and say if the amended abstract bears any office mark ? — A. No, sir. Q. Will you please see when it ])urports to be sworn to ? — A. Sworn to Sei)tember 21, LS74, before W. T. Bailey. (^. The same as the others ? — A. Yes, sir ; and sworn to before the sanx' man. (). Please see tlie dates of the Aiulitor's ami ( 'Omi)troller's certificates. — A. The Auditor's, October 8, 1873; the (Comptroller's, November 15, 1.S73. Q. Tliat abstract could not have been present when the Auditor and ComjdroMer adjusted tin; accounts? — A. Of <;ourse it was not ])resent; file aci'oiiut was adjusted on tlu; oi'iginal abstraet, and the vouciiersare in ('xcess of the allowance. A subseies that Wdidd l)e I'liiiiished would be copies of the originals. (.}. When an anumded voucher is fih'dwitli the original it then be- comes the voucher as amended? — A. Yes, 1 should say so. (^. Now, if th(! Secretiiry would certify he had given true copies of the, original N'oiU'heis on file, and it was foun*! that these amended ones were pot in the ollice in 1.S77, according to the course of the olfic*', you wonhl say they weic, not in the, ollice, or lie would have sent co]»ieN of tliciii .' — A. Ol'conrse; I (h» not know wiiat Dr. IMott applied for. (}. I )!■, Moll (lid nol apply tor Ihem ; it was Mr. Ifainsey who a])plied loi- the \(iiicliers (or use in his sail '. — A. 'Hie whole adjuslmeni. THE SIXTH DISTRICT OF NORTH CAROLINA. 309 Q. And tliey sent liim copies of abstracts all tlie way tliroiij>li, and if tlie amended abstiiiet Inid been in, and attached to tlie oii^^inal wlien tliis coi»y was made in 1S77, it would have been copieil there, wonld it not? — A. But you see that if the amended abstract was not (!0[)ied, that it was an omission upon the part of the clerk, if it was there, in not . Taking a Ibur-bushel distillery, and allowing tliem two gallons of whisky to the bushel, that would make eight gallons of whisky; the tax on it would be $7.1!0, out of which would come ^.'5 for thestorekee[)er ? — A. Yes, sir. Q. That would not pay the government a large margin? — A. $4.20 a day. I think that is better than allowing a man to run, and not getting anything IVom him. (^. Cndoubtedly you thought that would encourage nu'u to distill lawfully, instead of trying to blockade? — A. Yes, sir. (}. \Vhen a man liad a twelve-bushel still, was it necessary for his ('iicouragement t<> let him divide it into three or four stills? — A. T liavo thought alioiit that a. great juany tinu's, because 1 ha\'e known of men ha \ing distilleries veiy close together, wIh'IC a man started his distillery this month here on a luaiicii iind next month started another one not a gicat ways olf. (}. A btllc hi;;liir lip Mie biiiiich '/ — A. 'i'liat has be(ii brought to my THE SIXTH DISTRICT OF NORTH CAROLINA. 3 i 1 attention. I have consulted with my law advisers and others Iiow that could be prevented, and! have not understood tliat I would liavc any authority to i)revent a man who was operatinj;- two small distilU'ries. or require him to consolidate them, no more than I could require a man owning" two lar,^e distilleries to consolidate them. Q. Could there be any other motive with the men doing this than to derive some benefit from the pay of the storekeeper ? — A. I will telL you very frankly, I think that was a motive. We have fought against it, aiul finally I reduced their pay to $3 a day. Q. You si)oke of Dr. Mott's administration as being "eminently suc- cessful"; Avhat was the i)ercentage that it cost to collect the reveiuie in that district? — A. Oh, it was very large; my report will show. Q. Your report shows what it was a year ago. Your i-eport for this fiscal year is not out yet. — A. It w^as very large, but I do not think that the ofticers stole any money. Q. That may be. — A. I do not think that there was an excessive num- ber of people employed to enforce the laws. Q. That expenditure was about 54 per cent., I believe ? — A. I do not remember the ])er cent. It was very large. Q. It was over 50 per cent ? — A. I would not venture to say. Q. If you have got it stated, that will be sutficieut. — A. It is large, very large. Q. Suppose you add to that the expense of the judicial part, in the proceedings of the courts ; that expense is not added to your depart- ment. Would it not make it still larger? — A. Oh, yes. Q. Would it not make it 75 or SO percent. ? — A. I could not tell what these expenses were. I have not looked into that. Q. Of course no one could tell unless the expenses of the revenue de- partment Avere separated from the other expenses of the court, and that we have no means of doing that I know of. — A. Yes, sir. Q. At all events that would add very considerably to the cost of the collection. — A. The object of it was to suppress these frauds, and to do it at whatever cost was necessary. As I stated awhile ago I thought it was better to have an honest observance and enforcement of the laws at a large expense than to have turmoils, confusion, and discord, and a community of men engaged in the illicit manufacturing and selling- of whisky; and the result is, that we have followed that system of admin- istration, and I think when you go home and look it over closely you will see, if you consider the matter dispassionately, the results have been in favor of law and order. Q. That is your oiunion : whether it is mine or not is another matter, of course. Under this system of political assessments the more ofiicers are appointed the greater the amount of the aggregate assessments would be. — A. It is a nnitter of arithmetic. There is no question that if you have three hundred ofdcers and you receive $100 apiece from them that you have more raouey than you would have if you had a hundred ofticers and got $100 apiece. Q. So it was advantageous, in a party sense, to increase the number of officers also"? — A. I will answer that fully. I have never authorized the employment of a deputy collector, clerk, or storekeeper and ganger for party purposes. I have authorized the employment of these i)eoi)le for the purposes of enforcing the laws. I have always thought that when we overcame illicit distillers in those States, and showed them that the government was not undertaking to impair their rights as citi- zens, and they threw oft' the scales that were upon their eyes, that, like well-intentioned men out in Iowa, they would vote the Rei)ublican 312 COLLECTION OF INTERNAL REVENUE IN ticket; and I think you will find enough of them that will vote tbe ticket this fall to carry the State. Q. About tliose squads you spoke of that were employed, was there not a considerable increase of expenses for policing? — A. Yes, sir. Q. 1 will ask you if they were not actively employed in cam])aigning at the same time, carrying and distributing documents, getting up con- ventions, &c.f — A. If they were I was not aware of it. Q. You have never issued anything like a civil service reform order, forbidding them to do it? — A. I hold myself to be the most practical civil-service reformer in this country; I hold that a trne civil service is to have no more officers than needed, and to pay them reasonable sala- ries requiring them to perform their duties faithfully and honestly, and then to allow them to go forward and to exercise their right as citizens and do whatever political work they can conveniently for their party. Q. You mean lor the liepublican ])arty ? — A. Well, I would not ap- point a Democrat if I knew it; for [ tbink the true policy of party ad- ministration is to appoint its friends so as to uphold its ])riucii)les. Q. You spoke something of the monthly estimates, 1 think you called it, that the collector had to make to the office in order to enable the department to judge of the ])ropriety of the amount of his allowance; the monthly estimate of the collectors for their expenses in the office ? — A. Yes, sir. Q. 1 understood you that they were required to make a monthly es- timate to you ? — A. 1 know the allowance, and I know the number of l>ersons that they have employed. They report that now. If a man is oii" a month and away — say, the allowance has been made for a deputy collector — and this man has been moved, and his salary was $100 per month, in the next requisition he would omit to draw for that salary; and when we came to investigate the requisition, we would see whether he was drawing the exact amount that was necessary to pay the men there on duty. (^. Is it custonmry, legal, or proper, in any sense, to file vouchers in the name of one man, in order to draw money for another man ? — A. that is not a i)roi)er way to transact business at any time. i). Are ofticers required to swear to their accounts? — A. Yes, sir; that is the form of the voucher upon which they make out their ac- counts. Q. Could I get those montldy estimates of collector Mott for the year 1S73 ? — A. I will see whether they can be obtained. Q. Of course youknow thecharacter of revenue agent A. H.Brooks ? — A. Very well. Q. What is it ? — A. He is a most excellent officer. i). AVhat is it as a man ? — A. A trustworthy man in every respect. (^ And .Mr. McLeer ?— A. (lood man. (}. And yiv. Chapman and Mv. Kellogg ? — A. Chapman is a very good man. No better man in the (country than Kellogg. He would make a liist-iate United States Senator. Yes, sir; he is a first-class man. (}. And Mr. Wagner? — A. Jacob AVagncr is a man of most excellent ability, and t itist woit hy in every resi)ect. I ha\'e assigned the very best olh<-«*rs we had in the service to your State. (}. hi relerenee to this mat t<'r of othce ex])enses, thercj was levied one l)er (•(•Mt. a month. \v;is there not, by tlie c(tlh'ctor? — A. 1 (cannot give _\(Mi the contrnts (»r that report now without exann'ning it. 1 do not think that :ill I lie of'liceis \>:\\i\. THE SIXTH DISTRICT OF XOKTII CAROLINA. 313 (}. Ihit we have ^ot tlie iiapcr liciv, and it slutws it w;i.s one pei' eeiit. — A. It was soiaetliiiiii' like that. Q. If there were the three or four hundred oftic-er.s in the district you .sj)oke of — I suin^ose there are more tlian four hundred otlieers in the district all told? — A. I do not remember the luimberj three or four luni- dred. Q. There is one storekeeper to each distillery in opei-ation, and then some general storekeepers, dei)uties, and s])ecial deputies'? — A. Yes, sir; the special de])uties' emi)loyment is about over. Q. If they carried that out for three hundred ofilicers it would have yielded about $300 ])er month, would it not, if the sahiries axeragcd $100 a month? — A. If the salaiies aveia.ned $100 it would be a dollar apiece. Q. That would l>e rather much for the inciroi)ei- thing- to levy, and I stoi)j)ed it; they had collected about $300, buf I think this amount had been spread over several months. From what I gathered from 31r. Brooks, there was uo great amount of pressure brought to bear upon these people to induce them to contribute, but it was simply to pay oftice exjjeuses. Q. You say letters were seut out by you to all the officers on the sub- ject, iuquiriug what they had paid, &c.? — A. Yes, sir. Not to know what they had paid. No, I did not send letters for that. Q. AVhat did you seud letters to them for? — A. In regard to these office assessments'? No, I did not send letters to those persons. I directed Mr. Brooks to make the investigation. Q. Perhaps a letter was sent out relating to the subject of the charges that Dr. Mott had retained some of their money, and refused to ])ay them, &('. — A. I wM)uld have to refresh my memory whether I sent a letter to these people in regard to these ofti(;e expenses. Q. I understood you to say so when you replied to Mr. Pool. — A. That was in regard to whether they had been paid or not. By Mr. Pool : Q. Y^ou sent a circular letter to the subordinates of Dr. Mott on both subjects — on the subject whether he owed them anything, and also what they paid for office expenses. — A. If I did I had forgotten about that letter. I do not believe that I sent that sort of a letter. Mr. Pool. \Ye have a hundred answers to it. Senator McDill. I understood these answers were in regard to these very questions. — A. I cannot tell; I try to dismiss such things as that. By the Chairman: Q. I understood you to deny, in response to Mr. Pool, that you had sent any form of a letter to reply by. — A. Oh, yes, of course. Q. I will ask you if you did or did not get a letter from a young man lately in the revenue service, named JMr. Bogle, inclosing you a copy of a form that he said had been prepared by an officer and sent to them, and it had been handed to him? — A. I cannot answer that until I go to the office. I do not recollect that that was so. If it were true and brought to my attention I have forgotten it. Q. He testified he had got hold of the Ibrm, on the margin of which was " Write something like this," "Copy this,'' and that he had sent it to 3'ou to call your attention to it. — A. Nothing of that kind went from my office. Q. I ask you if you got from him such a letter? — A. I will see after I get to the office. That letter was sent out in absolute good faith to as- 31-4 COLLECTION OF INTERNAL REVENUE IN certain tbe tiutli. (A package of letters is liauded to witness, who examines tlieni.) I see that my recollection was at fault in that. Q. I simply wish to call your attention to the letter sent to you by the young- man Mr, Bogle? — A. I will see about that.* Q. In relation to the order that Collector Mott issued, forbidding his subordinates to send out any more warrants, I will ask you was that legal, and had he any authority to order his officers not to perform thei • duty '? — A. Well, I revoked the order. I thought it was not a proper order ro issue. Q. You may have done that as a matter of policy, I want to know if in your opinion it was not directly illegal ? — A. I thought that they ought to go on and perform their duty whether tlie court considered them right or not. Q. You said you would order, if that was continued, the district attorney to transfer the cases into the circuit court ? — A. Yes, sir. Q. AVhere the witnesses were not properly protected ? — A. Yes, sir. Q. Could he do that?— A. I think so. By Mr. Pool : Q. How long did those assessments for oftice expenses continue ? — A. I think only two or three months. Q. And there was only $300 altogetlier collected? — A. About that, I think. Q. And that amount of three hundred dollars was ascertained to be the sum collected upon an investigation through you by Mr. Brooks? — A. Y'es, sir. Q. Did not Dr. Mott stop making the collections for oflhce expenses after an allowance had been made to cover them and a year before it was brought to your attention? — A. iSTow, I am not able to state with absolute certainty in regard to that. It seems to me that I said to Dr. Mott, that this investigation showed that he ought to have some addi- tional allowance for oftice expenses; instead of relying upon his subor- dinates to contribute to make up those expenses, that he should esti- mate them for me, and I would allow them, and my recollection is, an additioiiiil allowance was made on his estimate. (^ '^riien the assessments stopped? — A. Oh, yes, sir; they stopped. (}. Was that not some twelvemonths before the investigation by Mr. Brooks ? — A. 1 say that I would not be able to state that. (^ The investigation showed that a very large number of officers did not i)ay at all, and also the letters you received in answer? — A. Just as I have stated on the examination-in-chief, that all tlu^ officers did not con- tribute, and there was no si)ecial pressure brought to bear ui)on them. (}. The answers of these ()ffi(;ers will show how much they did pay ? — A. Tlies*; answers will show more delinitely. (}. It is your iccolleiit ion that very few of the officers paid at all? — A. There was $300 collected. (}. Vou were asked just now, as a matter of arithmetic, whether po- litical assessments upon a larger number would not amount to nu)re tliiiii upon a smaller munber? — A. I replied that it would. (^. And that a larger number of olliccrs was caused by your reducing tlie recpiiied eii|»a('ity of the stills, and was also i>i<)dnced by a greater number of distilh^ries b«'ing ])ut up ? — A. These; oflicers were employed • ('oimniHHioiHT Riuiiii siiIih !(|1I«miI iy n'lKirlcd lliiili lio liad ciniscil (lilif^fut Bcjircli to l>c, iikkIc tliniMjili tlu! iilos of liis ol'licc iiml lomKl no record of uiiy such hitter from Mr. l{');,'h- or iiny one, cIhi;. Ilts was tlicrcforc al)h) to uLalc that no siudi letter lia I been I'ccciviMl liv liini. THE SIXTH DISTRICT OF NORTH CAKOLIXA. 315 to meet tlu? retinirements of tli(.' service there in that distriet in order to sui)])re8.s illicit distilling. Q. Did you try to have tlie number of stills inineased in order that you might have a correspoiuling increase of storekeejiers upon which to make political assessments? — A. Not atall,the bcnelits resulting jxiliti- cally from that were simply incidental. : Q. By having a great numlK^r of small distilleries and storekce]»ers ap])ointed thereto them, it necessarily increased largely the percentage; Ml the expenses of collection ? — A. Yes, sir. Q. Did not that reduce the expenses that had been incurred in courts? — A. I would suppose so; 1 never investigated the matter i»ar- ticularly. I know that that system of adniinistrarion resulted in the suppression of illict distilling and restored law^ and order there. Q. That would necessarily reduce the court expenses in prosecutions ? — A. Yes, sir. Q. I observed in the question that court expenses were added to in- crease the iiercentage of costs. I want to know if these increased ex- penses did not break up illict distilling and lessen the prosecutions in court, and therefore lessen the court expenses? — A. Wliere the people observe the law the court expenses will be greatly reduced. Q. I understood you to say that it was by mistake that a kinsman was assigned to a distillery run by his relative ? — A. If a case of that kind occurred it was entirely a mistake. 1 have no reason to believe there was any fraudulent intent in procuring the assignment, be(;ause the division betw^een the oflicers and distillers, if any such occurred, was a small thing after all. Q. In a district so large as this of Dr. Mott's, embracing a mountain- ous region of country and stills away out in isolated localities, would it not be very easy for such mistakes to occur? — A. They might occur. It is a very curious system of things where a man has a great amount of business if he does not now and then make mistakes. Q. Of that kind ?— A. Of any kind. Q. To have a large extent of country and a district inaccessible in the localities where the stills are run would make the collector especially liable to such mistakes? — A. Of course, he made mistakes; but I never had a suspicion that Dr. Mott was mixed up in any frauds there, and I did not believe he would be a party to them ; I do not thiidv he would intentionally make an assignment of that kind. Q. But one instance occurred in which you say double pay was drawn in the year 1872 or 1873, Avhen it was drawn by a deputy collector who acted at the same time as ganger. At that time such things were al- lowed and were thought to be lawful by Comptroller Taylor? — A. I think not. I tried to make that as clear as I could in the examination- in-chief. I do not think I can explain it more fully. I remember dis- •cussing that identical question with Comx)troller Taylor, and u]) to a certain time that was held to be lawful. Q. jNIy purpose ^vas merely to bring out that the only instance of that occurred in 1872 or 1873. — A. Yes, sir. The Chairman. I sujtpose you mean the only instance produced be- fore the committee ? Mr. Pool. I presume the committee has got them all. The Chairman. The Commissioner would not swear it never occurred since. The Witness. I do not swear anything about it. Mr. Pool. I say that the only instance produced before this commit- tee occurred m 1872 or 1873. 316 COLLECTION OF INTERNAL REVENUE IN The Chairman. Tliat is correct. ^Ir. Pool. Xo otlier instance has been producefl before tlie commit- tee. After this they changed the Law in 1878 or 1879? — A. Yes, sir. Q. These Kestler vouchers run from the 30th of September, 1872, to the 30th of June, 1873 — 9 montlis. It is in evidence here that the al- lowance of the collector was for three deputies at a hundred dollars each, up to May 20, 1873, and after that time for four deputies at $125 a month each. Mr. Kestler went upon duty on the 30th of September, 1872, and remained on duty to the 21st of October, 1872 — two-thirds of a month. ]Mr. Clarke, Dr. Mott's clerk, issued vouchers in the name of Kestler for the quarter running from the 30th of September, 1872, to the 31st of December, 1872, and then for the next quarter ending- March 31; and then for the next quarter ending June 30, 1873, which, lie says, was a mistake of his, supposing Mr. Kestler was continuing as deputy. It is in evidence that Mr. Walker was appointed deputy in i^lace of Kes- tler on the 20th of October, but no voucher was sent in in his name at all. The Chairman. Yon are mistaken ; Mr. Walker swore that he signed a voncher and it was not sent in; if it was not sent in, it was Clarke's fault. Mr. Pool. I said no voucher was sent in for Mr. AYalker at all dur- ing that year, and he served to the 20th of May, 1873. Mr. Mcintosh was appointed in Mr. Walker's place, and no voucher was sent in for him, but still in the name of Kestler, np to June 30, 1873. A voucher was sent in for Mr. Eamsay during that time, and for Mr. Drake during the whole 'three quarters, and for Mr. Kestler; the others were left out. In that shape it appears from the records there — that you had in your hand just now — it went from your office to the Fifth Auditor's, and then went from his office to the First Comptroller's; now when the First Comptroller received it in that shape — a voucher being sent in for a man not a deputy, as he knew the number of men that were acting as deputies at the time — would it not be his duty to investigate the matter and inform Dr. Mottf — A. I think it would. Q. Would it be Dr. Mott's duty to correspond directly with him in regard to any inquiry as to how that occurred ? — A. Yes, sir; any kind of an officer having the exanunation of an account can correspond directly with the person claiming credit or payment. Q. Detecting the voucher sent in the name of a man who was not an officer, he would be apt to correspond with him! — A. Oh! yes. (^. It wouhl have been Dr. Mott's duty to reply to the First Comp- troller? — A. Of course. (}. When the First Com])troller adjusted that account, would it not liave been Dr. ]\Iott's duty to conform to his adjustment by sending in amended vouchers in the name of the i)roi)er i)arties? — A. [ think it would. The collector (;()uld only take credit for the amount allowed him^ !).>• the S('(!r('tary of tlie Treasury. (). And y the Chairman: (^, Mr. J'ool asked you if it was not the duty of the Comptroller, when he found that an a(;connt lihid by Collector Mott was not correct, to correspond with him and have him (correct it. That is so, is it ? — A. I tiiinl< so. (). You know nothing of such a cori"es])ondence ? — A. Oh, no; I know notiiing of that coi'rcspondciice, but I piesume it is there. (,). !)(» .\<)U not know from the i)a|>ei's, and from what you have heard ill the offi(;<', that on a(!<;onnt of tIu^se very sanu' accounts, charges were Itroiigiit against I)i'. Mott, and he was turned out of office in the fall of ISTl ? — A. i n(i\'(U-in\'(\stigatcd the exact giounds u]>on which President (Iraiit iriiiovrd Dr. Moll. I (h) not know Miicthci; it was ui)on that or not . THE SIXTH DISTKICT OF NORTH CAROLINA. 319 Q. Did you never see Mr. Crane's rei)()rt ? — A. Xo, sir; 1 never ex- amined that. In fact, I know tliat since tliis investigation came up, there has been some talk about this i)ayinent to Mr. Jiamsay and those errors there cree])in<>- in. I understood tluit Dr. Mott made things sat- isfactory to the rresich'nt and convinced liim that there was no fraud nor intentional mistake about it, and the Presidiuit restored him. Q. Did you not also understand that the Commissioner and Secretary of the Treasury, i)rotested a.nainst his being restored l — A. Yes, sir; I think that Commissioner Douglass did. I do not know upon what grounds it was. I think the friends of Dr. Mott api)ealed directly to President Crant abont it. Q. 1 will ask you if it was not i)olitical intluence simply that restored Dr. Mott to oftice ? — A. I cannot tell yon about that. » Q. Is not that your understanding? — A. I do not think any of the Democrats went there to ask his retention. IMy understanding is, and that I gather from hearsay, that Judge Settle, Colonel Keogh, and some other prominent Eepiiblicans of Xorth Carolina (L have heard that stated — Colonel Keogh told nie) went to President Grant and insisted that injustice had been done Dr. Mott, and convinced the President that that was so, and he corrected it. Q. Did you not also understand that Simon Camerou, of Pennsyl- vania, interfered ? — A. 'No, sir ; I did not hear that. Q. I believe you told Mr. Pool that you did not consider what was done there, with reference to those vouchers, any irregularity, but sim- ply a correction of a mistake ? — A. AVell, I stated this, that Dr. JNIott evidently made a mistake in agreeing to ]>ay more than was authorized by the allowance to be paid him; that if he undertook to pay Inm more than that and his account was adjusted otherwise, it Avas an irreguhirity and had to be settled in that wny. Q. Was it usual to make up pay accounts in the name of men who were not in office at all? — A. I did not reply to that. While Mr. Pool laid his foundation covering that point, he did not make any inquiry in regai'd to it. I think that was entirely irregular. While a mistake might occur entirely without intentional fraud, it is entirely irregular to put in one voucher with one name, where the service had been per- formed by another ; but then you will understand that this is not the first case of that kind that has occurred. Q. This case was not only where a voucher was put in for a man who was not an officer, but where vouchers were forgotten to be put iu for men who were actually officers and doing the work? — A. I do not know what explanation has been made in regard to this matter. Q. I am asking you: it seems an extraordinary mistake, if Kestler's vouchers were put in, he not being in oftice? — A. That was wrong. Q. And there were three men who did the work and were in office, and they forgot to put iu v^ouchers for them? — A. If Kestler, once be- ing an officer, was removed, and some one was ai)poiuted in his i)lace, and the mistake was made of taking the voucher of Kestler for the services of his successor, thatvoucher would not pass muster in the Comptroller's Office; as a nuitter of course, the pay must go to the i^erson performing the work; but it was a little singular that Kestler's successor gave no receipt. Q. Kestler swore he did not give a receipt and Clarke admitted that he had forged his name. — A. Tliat is very singular. Of course that was wrong. Q. I asked him if that was not a forged voucher and he admitted it. Mr. Pool. I understood he had authority from Mr. Kestler to sign his Jiame. 320 COLLECTION OF INTERNAL REVENUE IN The Chairman. Ko, he said many of the officers gave him authority, but he did not remember whether Mr. Kestler had or had not. The Witness. I will state that it is entirely irregular for ver1)al au- thority to be taken by a collector or one of his (h'puties fi'om his sub- ordinates to sign their vouchvrs. Q. That itself was an irregularity. ]\[r. Pool. Mr. Clarke, I think, said he had authority from Mr. Kestler. The Witness. These matters, you understand, are entirely new to me, because I have never had occasion to investigate them. They were set- tled years ago. By the Chairman : Q. Yon said that it was regular and proper, if a mistake Imd been made, &c., in the vouchers, to amend that by substituting new ones if the Comptroller would require them. Now, I ask you, if these amended vouchers had been taken to the Comptroller's oftice by permission to correct a uiistake, if the Comptroller Avould have not made some in- dorsement upon them, or done something to recognize that these were amended vouchers? — A. I do in>t know what course he would pursue in regard to it.' You have exandned the original vouchers which passed through the Comptroller's office, and you find there are no marks or memoranda upon them, aiul 1 do not know that any other rule would l»e adopted in regard to amended vouchers; they seem to have been put in their proper i)laces, with the statement of the account, as made up by the Comptroller. I suppose that light would be shed upon the mat- ter by getting the correspondence that passed between the First Comp- troller and Collector JNIott. I apprehend there are some letters there that constitute a part of the record and which would give some expla- nation of the matter, that I would not be able to state under oath as a witness. I can cause an investigation to be made of it, if you choose, if you want to get right down to the bottom facts. Senator McDiLL. I would like to have the witness send the Comp- troller's correspondence about the matter. The Chairman. Very well. The Witness. All right; any letters that passed back and forth. Adjourned until Friday, July 14, 1882, at 10 o'clock. Commissioner Raum subsequently furnished copies of memorandum and correspondence in relation to this matter found on the files of the Fifth Auditor's oftice, to be appended to his testimony, as follows: Memorandum relative 1o the accounts of Kestler and othsrs. The nolU'ctor should lih' aiMeii(le of service to you in retresliing your memory of I lie case. If anything is wanting to perfed your idea of what is uccc.-^sary, please drop me a line. \'erv roHpeetCully, yours, &<•., (Signed.) .1. J. MOTT. W. So.MEits, Fs*!., fi/Zi .■hldil(ir''n Offire. THE SIXTH DLSTHICT OF NORTH CAROLINA. 321 r.MTKi) States Ixtkkxal Rkvkxce, Collector's Office, Dlstrict Nouth Cakulixa, , 1H7-. As cliicf clerk iuid (l(']>nty for Collector J. .1. Mott, of the Otli district of N. C, I made out the (piartcrly acjcoiiuts in his oliticf from I_)(^c. :51, '72, to Jiiiic. ;50, IH?:?. Knowiiif;- the aiiiouiits ])a-id to deputies I kept ae(-()Uiits sif^ued l)y tlieiii, so tiiat I iiiijiht not be delayed at tln^ end of each (piartiU' in sending in my (|uarfrily aeconnts. The district is large and the dei)uti<'s scattered and at intervals ai)sent from the •office for weeks at a time. Kestler was appointed a deputy coll'r, aud I did not know for seveial months but what he was still a deputy, as the collector had deputies actin" secretly, as it worked better in discovering the illicit operators. J3esides, it l)eing before the moieties wv.vo done away with, there were dilfereut men counected with the office and operating ati xpecial deputies in hunting up illicit distil- leries, &c. It was in this way, I suppose, that the mistake occurred in sending up Kestler's voucher. The deputies at that time did not draw their salaries regularly anyway, as they gen- erally paid themselve's out of the collections they nuide, and were settled with accord- ingly. When the assessors were going out the collector appointed several additional depu- ties on the Ist May, 1873, to help collect aud give information to the public concerning the new special tax stamps; this will account for the nnmlxjr of names on th(i .June abstract, only a portion of whom we received any allowance for. . H. Y. Mott was one of the principal collecting deputies during this iiuarter, and his name and voucher does not appear there as it shoiild have done. This was simply an oversight. J. A. CLARKE, Late Chief Clerk cf DepHy. Sworn and subscribed to before me this the 2lst day of September, 1874. E. B. DRAKE, U. S. Com. United States Internal Revenue, Collector's Office, 6th District North Carolina, Statesrille, Sept. 17, 1874. Sir: I respectfully ask to place on iile in your office some amended papers, abstracts C3 and vouchers 6".U, for the purpose of correcting my account, in which I hnd a mis- take. The accompanying papers will explain the matter. Very respectfully, Hon. .7. H. Ela, 5th Auditor, Treasury Depf., IVashinfjIon, D. C. J. J. MOTT, Collector. Washington, D. C, Friday, July 14, 1882. The committee met at 10 a. m. The following- witnesses were called on behalf of Dr. Mott. D. C. Pearson sworn and examined. By Mr. Pool : fl Question. Where do yon reside ? — Answer. In Morganton, l!^. C. ±^Q. What is your business? — A. I am at present a general storekeeper in the sixth district of North Carolina. l^Q. You reside not far froui that Soutli Mountain country that has been talked about here? — A. Yes, sir; I live at the county seat of Burke; the South Mountains are in that county. Q. Are you well acquainted with that country? — A. I think I am. Q. Will you state what the condition of the public sentiment was in that country, in regard to the internal revenue law, and the officers, and the collection of the revenue, souie years ago? — A. Yes, sir; well sir, there was a very bitter opposition to the revenue laws* and its officers S. Mis. 116 21 322 COLLECTION OF INTERNAL REVENUE IN there, directly after the war ni» to the year 187(5, There was not a li- censed distillery in the county for a considerable time; 1 do iiot know when the first one was started — probably not before 1874. There was a great deal of blockading' down in that section of the county. Q. Were there illicit distilleries there? — A. Yes, sir; that is what I mean by blockading. Q. Any great number of them'? — A. A considerable number, I think. Q. You do not think there was any legal distilleries there at all ! — A. There were none certainly prior to 187LJ. Q. All these people seemed determined to run their illicit distilleries and resist any attempt to break them up ? — A. They did resist those efforts frequently there prior to 187(3. Q. Was there bloodshed? — A. There was one ohicer wounded there at one time ; I do not know that any one was ever killed. During the administration of Weaver, who was the lirst internal revenue collec- tor in that district, there was a nuin by the name of John Sherman, who operated in that county as his chief deputy, wlio was fired upon frequently. Afterwards, Rollins was the collector. W. H. Deaverwas^ in there frequently, and tired upon. Q. That was before the consolidation? — A. Yes, sir; I am speaking of the time [)rior to 187(i. Q. It was then the old seventh district? — A. Deaver, in company with a United States officer, a lieutenant, who had charge of the squad, was tired upon, 1 do not know that nuy one was hurt. Since 1876^ Mr. Gillesjue, a deputy collector under Dr. Mott, was shot down in the York settlement and wounded in the arm. He was ;ilso accompanied by some United States trooi)s at the tin)e. I think he was. Q. Showing that they resisted not only the United States revenue officers, but also the United States troo])S? — A. These troops were at that time emi)loyed under the direction of the department to assist the collector in the enforcement of the law. Q. There seemed to be a determiiuition to resist the execution of the law in that section of the county? — A. That is my opinion, and it is verified by those circumstances. Q. Has there been an improvement in that respect "? — A, Very great j siuce 187G and 1877 there has been a very marked improvement. There has been no force used in the way of troops. There was what was called a special force that was employed by the collector, under the di- rection of the Commissioner of Internal Revenue. Those men were what we called a special force; they went about in squads over the country, under sonu' designated dei)uty, wlio was called captain of the squad. When those men first started out they were fired upon at one time articular section ? — A. There was a great deal of capital made out of the revenue laws in that locality. It was known as a lie- publican measure, and the Repul)licans were held responsible for it ; the prejudices of those people were ap|)ealed to, and 1 have no doubt many men who voted the Republican ticket prior to that time were induced to vote the Democratic ticket, thinking they would be relieved of the law and its operations by the Democratic administration coming into power — when the Democratic i)arty got control of things. Q. I was speaking of the Democrats in that particular locality of the South Mountains, and asked if they were not extremely bitter and vin- dictive in their ijolitical views ? — A. I do not know that there was any more of that there than in other localities; the intluences that were brought to bear were brought to bear upon the line I have stated; know- ing the weakness of those people, it was used in that section of the country when not used elsewhere. Q. Did the appointment of some Democrats to office under the col- lector seem to change the i)ublic sentiment there? — A. The public sen- timent became changed there, because the Democrats, getting control of Congress, made no change in the revenue laws, and those people became convinced that it would be the same, let them be in power or out of power; that those appeals that had been made to them on the part of the Democracy, to enable the Democracy to get into power, proved not to be true. Q. Was it your opinion, from your observation of that locality, that the Democrats excited those people to violations of the revenue laws ? — A. Those peojile had been in the habit of making whisky all their lives ; from after the war they thought they could do as heretofore. They knew nothing of the law, and the habits they had acquired for years before they kept up. I unhesitatingly say this, that politicians took advantage of those peoi)le down there, of their desire to violate the law, anyhow, to operate and make whisky. I do not mean to say that any individual, in open declaration, told them they had the right to violate the laws, or that they ought to do it. Q. You think the appointment of Democrats in that locality to office hel])ed to change public sentiment and make it better ? — A. I do, Q. You Think it was a wise policy ? — A. Yes, sir. Q. Are there not illicit distilleries in that locality now that you know 324 COLLECTION OF INTEENAL KEV^ENUE IN of ? — A. Not that I know of; comparatively speakiii"\Ir. SlKMinan. (}. Who rc(M)mmended you ami i>rocured your appointment? — A. It was through the collector's office — Dr. Mott. (^. What is your pay '? — A. I get four dollars a er, while ti ;ivelin^' ai-omid on your duties, assist in fiettin<»- iq) a delegation fsivorable to a ceitain gentlciniin for the Presid\i ne\<'r sold any Ibr him, oi' on aix'onnt of that distillery? — A. I iieM'i' sold any whisky in my liCe for anybody or to anybody. I may liave written for otlnu- |»arties about dealing in it. (^. Did you (n'er sell him any coin '. — A. I do not know that I did. I might Iia\e done so. i). Did yon know Jonas Kanisay if — A. Yes, sir; 1 know him. (,), Did he run adistillery '. — A. lie was indicted lor illicit distilling. (^>. I''oi- running an iilieil distiller.\ '! — A. Yes, sir; 1 think he was. THE SIXTH DISTRICT OF NORTH CAROLINA. 327 Q. Did you have an interest in liis distillery? — A. Xo, sir; I never liaoiiited. The ^\'^J'I^}J':ss. I wish to state this, tliat all the transactions, remote or dire(;t, that I have had with these peo]d(' were ])rior to 1870. Mr. Pool. Was that when the consolidation took ])lace? 'The \\i'j'.\ESS. That was i>rior to the consolidation. The CiiAiwMAN. When was the consolidation ''. Tiie Witness. Jt was in. the year 187(i. I tliiidv. Senator McDiLL. I snppose, strictly, <>ni' in\('stigation is confined to the- present sixth. The CiiAiK'MAN. Tiie ]>resent sixth cniliraccs l)oth districts. Mr. Tool,. Of course you can go into the sixth a very broad field for investigation, it seems to me it is contemi»lated in the language of the resolution. The OiiAiRMAN. r think so, undoubtedly. (To the witness.) You are aware of your rights in this matter, Mr. Pearson, and I am going to ask you some questions which you can de-* cline to answer if you see pro])er. Q. Did you at any time aid any of these distillers whom you have mentioned in procuring exhausted stamped barrels to be refilled with illicit whisky! — A. IS ever. Q. Did you never purchase any exhausted barrels for any of these distillers ? — A. Neveri Q. Did you never tell them where they could get them? — A. Never j I remember ordering for old man Walker some barrels from Salisbury from a merchant there; they were shipped up there on the train just as any other distiller would order barrels. Nothing was said about stamps or anything of that sort. I recollect on another occasion buying some barrels for a man named Hoffman, and they laid there in Morgantowu for months before he took them. They may have beeu used, but the stamps were certainly canceled. Q. Were you sure of that? Did you see them all? — A. I did not see them all; I just presume so. There was no disposition to defraud, or there would have been some secrecy about it. Q. Where did they lie! — A. In the warehouse in the rear of Major Wilson's store; the property belonged to him, but it was a merchant's store ; the barrels belonged to L. P. Henderson, who had been a dis- tiller. Q. Were you not accused of that and threatened with indictment on account of these barrels ! — A. Those ijarticular barrels ! Q. Some barrels like those ? — A. I do not know that I was. Q. For the use of uncanceled stamped barrels? — A. If so, it was never carried into execution. There was a rumor came to me about it, and I sat down and wrote a letter to Major Wagoner, who was the rev- enue agent, demanding an investigation of any such matters brought against me. I wrote to him at Greensboro. I desire to state now, in explanation of this matter which the chairman has asked me about, I was a i)ublic oflUcer in that county of Burke — a clerk of court — which was a large Democratic county. These people were my friends I might have acted in a way that might have misled and deceived I)eople. I kept on the good side of everybody, and was always elected clerk. When I ran for ofltice in that county, though I was a Kepubli- can, I was politic and prudent, and all that sort of thing, and that may not have been understood by the revenue oflQcers; but I was never in- dicted ; and if they looked into the matter, as I judge they did, the re- sult showed that they could not sustain any indictment. Q. You made friends, then, of the distillers!— A. With everybody. Q. With everybody, including tht^ distillers! — A. Y^es, sir. Q. Those bad fellows down there in the South Mountains that were violating the law, you made friends with them! — A. Yes, -sir; the first time I ran for clerk, out of a hundred and three votes (;ast at that box I got a hundred of them. The next time it turned out they were not so friendly; I only carried that box by eight votes. Q. When yoii were appointed as an ofiticer in the internal revenue, did not Dr. Mott tell you there had been those kind of charges made against you I— A. I do not think he did. Dr. Mott may have heard of 330 COLLECTION OF INTERNAL REVENUE IN those things himself. I never sought any position in the revenue serv- ice x>i"ior to the time I did. I was engaged there as a clerk, and it did not become me to run on the revenue side. It was not to my interest to do it. I told him this when I did apply for a position ; be liad con- fidence in my capacity, integrity, and eveiytliing else of that sort, and said I would ha^•e to give up tlie cU'rkshi]> to accei)t this ])osition. » Q. Was Mr. Cobb indicted in the Federal courts f — A. Yes, sir. Q. When ? — A. I cannot tell you the date ; it was when Mr. Chap- man was in that district as revenue agent that he was indicted. I think it was between 187(5 and 1878. Q. What was he indicted for ? — A. For some kind of frauds, 1 think. Among other things that were charged against him was refilling bar- rels, or assisting in some way about that. Q. When he was indicted he was storekeeper, was he not ? — A. I do not think he was acting as storekeeper at the time. Q. What capacity was he acting in? — A. I do not think he was act- ing in any capacity. I think he was off" duty. It may have been while he was distilling. Q. You think he was not indicted for conduct while on duty as store- keeper f — A. I do not think he was — that is not my recollection of it. Q. What became of the indictment ! — A. I do not know. Mr. Chair- man was investigating into the matter ; he was the revenue agent ; he had the disposition of it. Q. IJid not Mr. Cobb plead guilty in the court ? — A. He may have done so or may not. I cannot tell you of my own knowledge. I think thei'e was some compromise in the matter of that sort. Q. Did not Mr. Cobb consult you about his troubles at the time he "was indicted? — A. Yes, sir; he talked to me a good deal about it. Q. Did he not admit that he had defrauded the government ? — A. I cannot tell you his conversation with me. It was more like that with an attorney; and I would not feel at liberty to state what he did say. Q. You are not a practicing lawyer f — A. Not a practicing attorney, but I had a good deal to do for these people in that capacity in the Fed- eral courts. Q. I sup[)ose you can hardly plead the privileges of an attorney in that case '! — A. I would not like to say what he had said to me. Nor do I want to be understood that I decline to answer on the ground that it would criminate myself. Q. That would criminate, not you, but another num — what he had said to you ; tlie case is already disposed of f — A. I do not remember what disi)osition was made of the indictment. If I saw what he said; I can- not tell you what he said unless I saw the record. (^. Your conversation is not on the record if it was conlidential? — A. No, sir. (}. If he plead guilty there was some compromise in the matter. I will |)Mt the (|nestion to yon in this way: you leained from om^ source or another, which satislied you that Cobb was guilty ? — A. lean only give yon my opinion about that. (). \'our opinion is what we want. — A. 1 do not like to give an opinion about a man wlioiii 1 ha\c some regard for. It would only be a matter of opinion. 'I'he ('ifAllMlAN (t<» t he. commit Ice). Do you think the witness is at liberty to (lecliiM' answering that (pu'stion '? Scimtiii- McDri.i,. I ()o not think there is any legal (^laim tlnit can exciiiiil liilil. THE SIXTH DISTRICT OF NORTH CAROLINA. 331 By the Chairman : Q. Did you have reason to believe tliat lie. Avas j^uilty ?— A. If being- indicted, and a number of witnesses being- summoned, and his anxiety about the matter woukl be reason for it, 1 should have reason for be- lieving he was guilty. Q. Did you have any other reasou except his anxiety, and his being indicted, to believe so? — A. I presume Cobb was guilty of violation of the law. Q. jSTow, did you nwt afterwards recommend liim to Dr. ]\Iott for ap- pointment as special deputy collector? — A. I anded. The indictment a^^ainst Cobb occiirn^d in 1878, when ]Mr. Chapman was there. I think the thing was arranged. Mr. Chapman did not object to Mr. Cobb's l)eing appointed in the serv- ice because he could render valuable assistance in suppressing- this blockading. He was put on the special force. The special force was disbandetl and Cobb was out of employment before he was put in with Lillington, and it was during the time he was with Lillington that he was indicted for this irregularity at Asheville. . Q. What was the duty of this squad? — A. Police duty. Q. Patrolling the district ? — A. Ves, sir. Q. Arresting violators of the law, illicit whisky distillers, and so on ? — A. Yes, sir. Q. Was Cobb ever used at any time, and his subordinates, to aid in getting up delegations for the Chicago convention f — A. If he was I do not know it. Q. Did he not do some of that work under your instructions ? — A. Mr. Cobb and I conferred together as anybody would in the political cam- paign. Q. What was the substance of jour conference ? — A. I cannot tell you. We laid plans to get away with the Bourbon crowd, if we could. ' Q. I am speaking with reference to the Chicago convention ? — A. We laid plans to get away with those of our own crowd that were opposed to us. I cannot tell you what did occur. Q. Did Cobb and Ms squad make any arrests in Burke County for violation of the revenue laws ? — A. I cannot tell you. I think they did. Arrests were being matle there more or less all the time. Arrests were being made in this way: A warrant was sworn out and placed in the hands of the marshal, and the marshal brought the man before the commissioner. Q. Can you name any cases of arrests during that time? — A. I can- not. My duties at that time were in another portion of the district. Q. You were chiefly interested, then, in getting away with the Bour- bon crowd? — A. Yes, sir; we went for defeating Jarvis and Hancock. Q. Can you give me an instance of any arrests made in the district during that cam]iaign by Cobb and his squad "I — A. 1 could not with- out studying about the matter. I did not i)ay any attention to other portions of the district. 1 had nothing to do with their duties what- ever, ;iiid since I hav<^ been in the revenue service I have taken partic- ular i)ains to attend to my own business and leaver others aloiu* ; tried to do my duties correctly and pi-operly. (^>. Who haided the Ifcpuhlicau oflicers around from one ])lace to another and ])aid their exi)enses in that district? — A. 1 do not know, sir. I myself met -Judge BuxtAUi and Mr. I'>verett, and others u\) in .McDowell County, and 1 came with them from thereto Uridgewater, in P.urke (bounty, on the lailroad. 1 had a carriage myself, and brought tlM'in to Morgaiiton and entertained them that night in the hotel, and sent tlieni IVom there to their next appointnuMit on John's Uiver. (}. Who did voii send to take them over tliere ? — A. Cobb and New- ton llalylmrton went along. Ilid.vbmt(ui was a storekeeper and Cobb was a specjiil dfpiilA-. I know tli:il ll;il vlmrtoii w;is not on duty or in the ser\ief :il t li;it I line. (}. lie imd ;i coiiiiiiissiou t — A. N«i, sir; not at tluit time. THE SIXTH DISTRICT OF NORTH CAROLINA. 333 Q. I iiskeoke of. 1 do not think Cohl* himself was at Jiridgcwater. I am sure none of them were in .McDowell County. Q. All the service they performed that fall was of a jtolitical char- acter, instead of for the revenue? — A. I think not; that is my ojjinion. L uever had any such idea that they were ]>erforminf;- political woik instead ot revenue work. These two occasions that I was with those <;entlemen there was uone of the squad present. Q. Do you know whether Cobb is iH)t indicted now for making out false vouchers for ser%'ices purporting to have been rendered during that same campaign ? — A. I do not know anything about it of my own knowledge. 1 will answer that question in this way. I understood that what he was indicted for, and brought u[) there in Asheville, was, when he was attending the last Federal court, it was nothing for what he had done in the canii)aign ar all with vouchers, but for something altogether since. Q. Who is the district attorney for the district f — A. James K. l>oyd. Q. Are you any connection of his in any way? — A. Xone. lie mar- ried a Holt, and so d.o 1. But I do not think our wives are in any way related. Q. You and Mr. Boyd are friends ? — A. I am not intimate with him. I know him. Q. Have you promised to use your inHuence with Mr. Boyd to get Cobb out of this second trouble ? — A. I cannot answer that question in that sort of way. 1 will tell you what I did do: When in Asheville at the Federal court I S[)oke to the district attorney about the nnitter, but as to j)roinising anything of that sort it is not so. I was requested to do so, and 1 s])oke to him, but the thing was not in his court and he could not take any cognizance of it. It had not reached his court at the time I was there. Q. You spoke to him about it in behalf of 'Sir. Cobl) when it did get into his court? — A. Xo; 1 thought it was in his court. He told me it was not. I desired that Cobb shoidd nmke the explanation to him about the matter as he had explained it to me, be(;ause if Cobl)'s ex- planation was true, it was a frivolous and nmlicious indictment. Q. Do you know who got it up ? — A. I know what was told me. Q. That is what I mean, of course. — A. The Douglass faction there, if I may be allowed to call them that, all said to be unfriendly to the collector, and it was a lick at him over Cobb's shoulders. It was a mere matter, he told me, of board. Cobb was boarding at one hotel, and he had so mnch board to ])ay per day, and he charged what the bal- ance of the hotels charged. That is the wa.^^ he has explained it to me; and these fellows thought that it would affect Dr. Mott in some way, and they got hold of one of his vouchers and got him into trouble. Q. That is the way you recollect it. — A. Yes, sir; so I was told, I have reason to beiie\ e that was the character of it. Q. Does Dr. Mott ever consult you about the appointment of stoie- keepers and gangers in your district ? — A. In my innnediate locality he does, or rather I have consulted him mostly about it. I will say another thing, that he has said to n e to be very careful and ])articular, and that he would hold me strictly responsible for mistakes of that sort made, and wherever a mistake was made I have written to him at once about it, and the matter has been remedied by the party not getting 334 COLLECTION OF INTERNAL REVENUE IN work, and a storekeeper might as well be removed as to be without work. Q. A great many persons have been recommended by Dr. Mott at your suggestion ? — A. I could not tell you a great many ; probably eight or teu. Q. Can you give me the n^tuies of them? — A. I have recommended T. K. Halyburton for one, E. S. Walton for another. Q. And who else? — A. Richard Williams and some others. Q. What places were they to getres])ectively ? — A. To be api)ointed storekeepers— all these men that I have spoken to you about. Q. Did you have any conversation on the subject of suppressing- frauds in Burke County, with T. K. Davis, who was examined here the other day! — A. Yes, sir; frequently. Q. Did you express any anxiety to him e\er about stopping viola- tions of the law in your county ? — A. I rendered assistance to him to do so, and 31r. Cobb has rendered very active assistance in person. I have consulted with him about the matter, aud advised him what sort of course he ought to pursue. Q. Confidentially? — A. Yes, sir; this was i)rior to my connection Avith tlie internal-revenue service. Q. That is what I mean. — A. Yes, sir; I have had conversations with him frequently. Q. Did he advise and tell you in these conversations what places he was going to visit, and where he exjiected to find violations of law, and so on ? — A. Yes, sir ; he has done so. Q. Did you at any time give notice to the ])arties that he was about to visit ? — A. No, sir. Q. In order to keep on good terms with tliem ? — A. Xo, sir ; that was alleged to me at one time in the early part of 1808, or along there. Q. You did not at any tiuie send any notices or procure them to be sent to these peoi)le? — A. I have used my intluence in that division in a double sort of way. I wanted him to be light on these people if they got into trouble — I knew it was wrong, of course, the violation of these laws, and have never encouraged it. But if these men got into trouble T always tried to get them out by ijursuing a begging sort of policy, and always had Davis's assistance in these eftbrts to do it. Q. Do you deny em])]iatically you sent notices to those engaged in illicit distilling, or in any other violations of the law, or advised them that sonu; one was coming, and to look out? — A. As to my being any such messenger I deny it enq^hatically. (^. Have you agreed to recommend Cobb for reappointment if he should get out of tliis scrape? — A. I don't know tliat 1 have. Q. Have you not spoken to Dr. Mott about it? — A. No, sir; I have 7)()t — not about reai)i)oint ing (Jobb. 1 spoke to Dr. Mott about an ap- pointment for Cobit tliere on thc^ sjiecial force. 1 spoke to him about ap])ointinghiMi to anotlu'r i)osition jtrior to n)y knowlen that he iiad orders to \isit and de- THE SIXTH DISTRICT OF NORTH CAROLINA. 335 stroy certain distilleries, and look out for certain violations of tiic law? — A, He may Inive consulted me while be was on tliis sjiecial force about bis plan of operatons, and so on. Q. Wbat are the duties of your olllice as a s^'iieral stoickceiier ? — A To take cliar}4e of the distilleries that are in my division under suspen- sion, and to visit these distilleries when occasion recjuires — once a month — and when parties desire to tax-])ay whisky and withdraw it, or when any inspection of the distillery is re(piired, I make out monthly reports of the quantity of whisky in the warehouse and the (juantity tax-jiaid dur- ing the month. Q. Is it not a part of your duty to report any irrei;ularity on the part of the licensed distillers and storekeepers in tlie territory to which you are assigned ? — A. 1 have nothing- to do with a distilleiy unless iib is under suspension; nothing at all. That belongs to the dei»uty c(dlector when the distillery is in o])eration; it. is not under my charge. I would not hesitate, though, if I saw or knew of irregularity, to feel it my duty to report it. Q. Is it not a j)art of your sworn duty to report all irregularities that come to your knowledge? — A. Yes, sir; commonly so considered, but it is not made 1113' special duty to lind out those things. Q. Do you know Kobert Powell? — A. I do, sir. Q. Has he been a storekeeper to a distiller}? — A. Yes, sir. Q. What distillery? — A. The distillery was bonded in the name of J. Martin. Q. Since 1880, was it? — A. The distilleiy was started since 1880, yes, sir; I think so. Q. You say it was bonded in the name of Jones Martin; who was the real owner of that distillery? — A. I presume Martin. I oi< into that matter, to investigate it. I iistol saw it? — A. I do'not know. It is very likely that he did. Mr. Ilristol was oikh' storekeeper, and was familiar Avith the duties of a storekeeper, and assisted I'owell in makiug out his returns. (^. Von and Mr. Powell arei)artners in business? — A. Ter at your leeommendation ? — A. I a-ssisted in I lie mallei'; yes, .sjr. THE SIXTH DISTRICT OF NORTH CAROLINA, 337 Q. Did you ever liitbrin Dr. Mott that Powell wis relate I or con- nected with the distiller; and did you intorin hiiu what was ^'oiiig on there iu your opinion '^ — A. I had no reason to Ix-lieve that i*owcll was connected with the distiller, 1 infornuMl theohice, thron^h Jiailcy, and the result of that information was, as I told you, the distillery was stopped, and Powell was removed. 1 informed tlie office through (feputy collector, because the deputy collector had l)eeu up there. Jle was often there during every month. Q. Did you not know from the confession of Powell, or otherwise, that he was violating- the law 1 — A. I did not. He made no such confes- sion to me, but I merely insisted, with the dei)uty collector, that he should investigate this matter. It was his province and duty alone to do it. I merely did what was my moral duty to do as an otfu^er of the government. Q. Before you did that, weretlu^ rumors hot and on all sides, that h(^ was violating the law, and owner of that distillery — at which he was storekeeper? — A. It was n[)on these rumors I «lid it; I heard it l)efore. Q. Did he not sell licjuor from that distillery ? — \. If he did, I did not know of it to my knowledge. Q. Did he not retail liquor in that town of Morganton, without either State or United States license !^A. Not to my knowledge; I had heard such charges brought against him, and called Mr. Bailey's attention to these amongst other things. I really knew nothing of it, of my own knowledge. Q. Have you been interested in the iirotits of any distillery since you have been a government officer"? — A. Never in the slightest degree, either directly or indirectly, remote or in any other way. Q. Have you not been reported to ])r. ]Mott as being interested iu a distillery? — A. If so, I never heard of any such report. Q. Had von no interest whatever in the sales of whisky maer ; that lias been alleged. I want to say further, right here, that I have exerted my intluence to prevent any such rumors getting alloat, or any suspi- cion of any such thing; and have written to the oftice refusing to rec- ommend the assignment of a man who w^as suspected of having di- vided his pay, even upon the suspicion of such a thing, in order to break it up, if it existed. Q. Did you not talk with men who were suspected of blockading to get them to take out licenses for legal distilleries ? — A. Yes, sir. Q. In doing so, did you ever advise them that they could arrange with the storekeeper? — A. No, sir; never made any such proi)()sitioii. Q. I mean given them such an advice ? — A. I have given thiMu such advice as would prevent their blockading, and get them into the chan- nel of running according to law. Q. What had the distillers to do in the selection of their storekeepers? — A. They had nothing to do with it. They had the matter of prefer- ence about it, as each one naturally Avould have, where an ofllcer was better acquaiuted with the distiller than any other person. They would ask for a man of equal integrity, and all that sort of thing. If I had been the collector, I would liave given the distillers that recognition, and the collector endeavored to do so. Q. You would recommend it accordingly ? — A. I did. where the inter- ests of the government would be protected and the distiller pleased at the same time. I recommended that. Q. Did 3'ou ever at any time assign or recommend the assignment of a storekee])er to a distillery where the storekeeper was related to the distiller? — A. I might have done so, not knowing at the time of the relation. I do not know of any instance where I did it. If the rela- tionship had been a near one, I would not have been very apt to have done it; if distant, I might have done it. Q. Was M. C. Epley's distillery in your district while under sus])eii- sion ? — A. Yes, sir. Q. How much liquor was in it when it suspended? — A. There was re])orted to be several hundred gallons ; the exact number I cannot tell you. Q. Who was it reported by, the agent ?— A. That was the report of the last storekeeper in charge, and Avhen the books were turned over to me, they showed the existence of so many barrels containing so 340 COLLECTION OF INTERNAL REVENUE IN mauy j^^allou.s iu the warehouse. Soon after the distillery was put iu my charge, the distillery was broken into; and it was reported to the bondsmen, and I went up there. I wrote to the office, informing- them about it. In the meantime, the barrels were very bad. Indeed the whisky was in bad condition, the whisky was very bad, too, besides be- low proof: many of the l)arrels were leaking, the staves loose, and the hoops off. The best of the barrels were taken and refilled out of those barrels there that would not hold whisky. The empty barrels were re- ported as the regulations required them to be, in red ink, on the 87; and their tax was reported and put upon the assessment list of the deputy collector for the collection of the taxes. The warehouse was made as secure as we could make it, and locked up. Q. How many gallons were in the distillery, do you think, when re- ported to you by the storekeeper who last had it in charge, to the best of your knowledge ? — A. There were between four and five hundred gallons, perhaps more. Q. AVhen it was seized and sold, how much was there ? — A. Prior to the seizure and the selling I want to state another thing. There was still some three or four hundred gallons — nearly sixty or a hundi^ed gal- lons had gone out of the warehouse then — which 1 reported. These bondsmen were induced to try aud sell the whisky and take it out of There. It was in a remote place, and Mr. Epley was a man of bad repu- tation. These bondsmen talked to me about it. I tohl them their reliei' was to tax-pay the whisky and to take it out. The government did not require a man to stay there all the while to guard it, but only to lock it. It was entered again afterwards, or reported to be, rather ; the deputy went up. I did not go that time because of his going; some of the bondsmen went to a man named ]\IcDowell, of McDowell & Co., who agreed Avith the bondsmen to take and tax pay the whisky and send for withdrawal stamps; but, on account of the poor quality of the whisky, the man declined to take it and get the stamps. When the deputy collector took the whisky out of there, I do not thiuk there was more than one barrel in there. I do not know how many gallons ; I think V)etween thirty and forty gallons. Q. You say the bondsmen com[)laiiied frecpiently to you that the whisky was Ix'ing stolen ? — A. Yes, t^ir. (}. And asked you to take such action as would protect them ? — A. They had it iu their power, and I did evervthiug I could. 1 could not stay there night and y piiving the taxes 1' — A. Yes, sir; when they i)aid the taxes they wer(; liable for it any way, if tiie distiller failed to i)ay it. THE SIXTH DISTRICT OF NORTH CAROLLVA. 341 Q. Notwithstanding' that it was lost while under \'(jni care '. — A. It was not nnder my care; it was in my charge by reason of the sus]tension. It was nnder their care; they were the l)ondsmen lor it, and they lived in the n*eighborhood. Q. Who was the storekeeper for Peter Mull ? — A. 1 do not think that Peter Mull ever has run a licensed distillery since the district was con- solidated. Eiley Taleut, who is a Democrat, was a]>i>ointed, with a view of assigning him to Peter's place, and he tried to induce him to quit blockading and run a government distillery. Q. Was not (_'Ol)l) a storekeeper for Peter Mull at one time? — A. I til ink not. Q. In 1874 or 1875! — A. If so, I do not remember. I'eter Mull ran a distillery there before the consolidation ; Joel Cloud was his storekeei)ei', and a man named Bridgers. By Mr. Pool : Q. You mean that was before it went into the sixth district ? — A. Yes, sir ; I do not think Mull ever ran a distillery since. • By the Chairman : Q. Do you recollect writing a letter to Mr. Cobb about that time, or early in 1870, about that distillery, cautioning him about his actions; that the times were squally, and he had better look out? — A. No, sir. Q. Yon did not write the letter ?— A. Cobb, I think, was on duty at Hutfinan's distillery at that time. I wrote Cobb a letter telling him these rumors about his conduct, cautioning him to be more observant, and all that sort of thing ; that his distillery would probably undergo an inspection, and he ought to have everything right; but he was not at Mull's, but at Huffman's— HuU'm an & Co's. I wish to state again that all of these transactions alluded to by the chairman were before I had any connection with the government as an ofticer, or desired to have. Q. In connection with this question that I have asked you, whether you had ever been threatened with an indictment for these oftenses, I will read to you froui the report of the revenue agent, Jacob Wagoner : I liave the honor to report that I have for some time past Vieen engaged in an inves- tigation of the acts of certain persons near Morgaiiton, in the sixth district of North Carolina, among them R. A. Cobb, United States storekeeper and ganger: D. C. Pear- son, clerk Bnrke Connty snperior conrt ; Terrill Hndson ; Hndson, Johnson cV' Co., and Huffman & Co., distillers, all of 's\'honi are, and have been, engaged .severally, and in combination, to defraud the revenue in unlawfully removing spirits, retilling empty stamped casks and re-using sjiirit stamps, with the result of securing what ap- pears to be conclusive evidence of their guilt. Being al)out to leave this district, I have placed this evidence in the hands jointly of Collector J. J. Mott and Revenue Agent Chapnuiu, to be used in .seizing property, and the bringing offenders to pun- ishment. Collector Mott is very indignant at the conduct of Storekeeper Cobb, who has thus gT0.ssly betrayed his coiitidence, and is disi)osedto press the case against him and his associates. I trust that he may be instructed to cause his immediate removal froui ottice, ami that prosecution ))e instituted against him, as he has been the leading .spirit in the frauds, and that Mr. Cha})man may be advised of the importance of im- mediate action in these cases. Did YOU ever hear of that before '?— A. Never : that is the first of that. Q. Did Mr. Chapman or Dr. Mott ever talk with you about it ?— A. I want to explain ; I never heard of that report ; I heard of some sus- picions that Wagner had, and wrote a letter demanding, so far as 1 was concerned, an investigation. I wrote that letter to Greensboro. Q. To whom?— A. Mr. J. B. Gritter. He was a deputy marshal un- der Douglass. Wagner had his headquarters at Greensboro, and 1 told him to let Wagner know or INIr. Cliapmaii. that I had heard such 342 COLLECTION OF INTERNAL REVENUE IN reports bad been made to hiui, and demanded an investigation, and after lie did investigate it, in consequence of that I suppose, a warrant was sworn out against Cobb. A thorough investigation of the matter Nvas had. I was present. I tokl the connnissioner wlio conducted ft to ask all sons of questions, to see if I was implicated. ]\lr. Chai)man was satisfied, and there never was an indictment got cnit against me. Q. Do you know if Mr. Chapman ever made a report? — A. I do not. I know this, in consequence of their investigatio]i, that notliing was ever brought against me. I went to the court and tohl the district attorney that I was tired out with these insinuations and aspersions on me, and demanded that tlie thing should be looked into. Q. You did not demand it of tlie revenue agent, but you wrote to Mr. Gritter ? — A. Dr. ]\Iott knew my feelings in regard to it, and he and I liad a conversation in regard to it. He may have told me at one time how these matters were reported by these agents. Mr, Pool, Was Mr, Pearson an officer at that time. The CHAlR^LiN. Xo, sir; A clerk of the court. The Witness. No, sir; not seeking any ofHce at the hands of the government. All this was known to the department wlien I was ap- l)ointed, and I judge if there had been any reason for the truth of these things, that my appointment would have been withheld, or not made. 1 will further state that the collector himself became satistied of the un- truthfulness of it, or he never would have recommended my appoint- ment. Ey :\[r. Pool : Q. You see your attention has been called to rumor after rumor, iir regard to charges which you have answered here, and rumors in regard to others. 1 want to ask you this question : were not rumors of all sorts of character rife at that time against lirst one and then another '/ — A. Yes, sir. Q. Especially active Eepublicans ? — A. Yes, sir. Q. "Were not such rumors repeated on the stump by political speak- ers there ? — A. Thej' were ; but I never had a rumor of this sort repeated against me on the stump. Q. Dile, who were alle.ii^e(l to be illicit distillers and others were in the re,i;nlar conrse ofyonr bnsiness .' — A. Why, certainly. Q. You did not consider that yon had any rij^ht to refuse a man a bushel of corn because it mi<;ht be said that he was an illicit distiller? — A. ( >ther merchants charge made against any of the others to my knowledge. Q. The ]>ositi(Mi you recommendecl Col)b to was that of s[)ecial dep- uty ? — A. Si)ecial deputy ; yes, sir. Q. Is it the duty of a s])ecial dejMity to do anything more than to go around ])oliciug and breaking up illicit distilleries ' — A. Xothing else, whatever. Q. Has he anything to do with the collection of the revenue' — A. Nothing at all. Q. Does he handle any public money? — A. None. Q. He has no responsil>ility to the government pecuniaiily at all ? — A. None. I said further that the i)utting of Cobb on this special force met with the approbation of ]N[r. Chapnum, the revenue agent. Q. And that was after his history had been investigated? — A. Yes, sir; investigated thoroughly, Q. Was Cobb an active, efficient man? — A. Very, sir; proved to be afterwards, while ou duty as a special deputy. Q. Was he well acquainted with the mountain roads and bridle- paths all through that section of the country ? — A. Very well, sir; yes, sir. Q. Was he not specially fitted, after his reform, for the character of the work given to him on account of the special information that he had in regard to these illegal distilleries ? — A. Y^es, sir. Q. Was that not a good reason to ai)point him? — A. That was the reason given for putting him in, by Mr. Chapman particularly. By the Chairman. He knew how it was himself. The Witness. Mr. Chapman thought so. By Mr. Pool. It turned out to be so. The Witness. It turned out that Cobb was very efficient and faith- ful, as I know, while on duty in that capacity. Q. You said that Mr. Cobb since that time had been indicted on the charge of having made out false accounts? — A. Y'es, sir. Q. Did that false account relate to the revenue at all ? — A. It was not that kind of fraud. Q. Not against the revenue? — A. Oh, no sir; it was, as I understand, while these men were in attendance at court they were aHowed their ex])enses, whatever that might be. Q. It was a fraud against the court? — A. I do not know what it was against. Q. It uas against the court, and in relation to the fund for witnesses for the i)r()secution, came out of the eourt funds expemled by the mar- shal ?— A. It goes through there. Who paid by, I don't know. 344 COLLECTION OF INTERNAL REVENUE IN Q. Dr. Mott bad nothing to do with itf — A. No, sir. The Chairman. I think that you are mistaken about that. I think the travebng expenses incurred by special deimties in all kinds of duty are ])aid and duly approved in Dr. JNIott's office. Mr. Pool. He was attending court as a witness? — A. Yes, sir; that is my understanding. I merely give this from information. JNIaybe it liad nothing to do with this voucher. The Chairman. Witnesses who receive full salary get no per diem ^svheu attending court; they get only their actual expenses. Mr. Pool. This account was an expense account. The Witness. That is paid by the marshal. The Chairman. If he went down to court as a part of his duty as a deputy, it would be his traveling expenses, and go through Dr. Mott's office; his fee as a witness would be })aid by the marshal of the court. Mr. Pool. This account was for his board bill at court while attend- ing as a witness '? — A. Yes, sir; and the irregularity was discovered in the marshal's department at court, and it was gotten up there as al- leged by these men, who were unfriendly to the collector, as a lick at Dr. Mott over Cobb's shoulders. I give you that, not as my own knowl- edge, l)ut just what I have heard. Q. When Cobb was running his still, it was a legal still was it not? — A. Yes, sir. Q. But that was before the consolidation of the district? — A. jS^o; Cobl) ran a legal distillery since the (consolidation of the district, in 187G or 1877 or 1878, somewhere along there. Q. You were asked if you did not engage in selling some whisky in Aslieville, and you said that you did not, and spoke of a ailey the trouble of getting there when Mr. Powell was out of town. Q. If ]Mr. Powell liad really been interested as one of the owners of this distillery, such a notice to him could not change that fact ? — A. I do not see how it could. Q. You do not see how the notice wouhl have put him on guard in any way at all ? — A. Not in any way. The notice might have this eft'ect if Powell liiid been bhxikading oi' anything of that sort. (^). Tliis was not a chaige of blockading, but of being a part owner? — A. lie could n(»f change that otfense if ili'xistcd. i). \t)ii tiiiiik it prolijildc that Bailey notitied him so that he would be on iiand and hccdidd sec or hear what he had to state. — A. Saw noth- ing improper in il. (}. I will call your attention to .Mr. I"]p'ev and that distilleiy: A\'as it in any way your duty to i»roteet that whisky, except to see that tln^ warehouse Wiis kept l(»cked ? — .\. No, sir. (). The Nuieties li;i(| that Upon their shoulders? — A. 1 should have THE 8IXTH DISTRICT OF NORTH CAROLINA. 345 felt it my duty upon an examination, etc., if it had Ix-en unsatc, 1o liavi* procured nails and a hammer and make the liou.se as .secure a.s po.ssible. Q. Whicli you did? — A. Certainly, I as.s upon them. I have nothing to do with them. Q. But, still, in law the government would be entitled to just as much for the whisky so taken out as if it had staid there? — A. Certainly. The committee took a recess until 2 p. m. Washington, D. C, Friday. July 14, 1SS2. , The committee met after recess at 2 yt. m. E. S. Walton sworn and examined. By Mr. Pool : Question. Where do you reside '? — Answer. At Morgantou. Q. What is your occupation ? — A. I am merchandising now. 1 ha\'e been United States storekeeper, but have not been on duty for eight months; since I have engaged in lousiness. Q. Are you well acqnainted with the 6th collection district of Xorth Carolina? — A. Portions of it, sir. Q. Do you know five, six, or seven years ago, and along there, that there w^as a great deal of trouble about collecting the internal revenue in that district ? — A. Yes, sir; you refer to blockading there? Q. Y'es, sir; and resistance to the laws. — A. Yes, sir. Q. A general denunciation of revenue laws and a feeling in the com- munity adverse to the collector's office! — A. Yes, sir. Q. IJid it exist to a very great extent? — A. I think it did. Q. Has it improved f — A. Decidedly so. Q. Was it at one time unsafe for revenue officers to go unarmed and unattended through parts of that district? — A. I think so. Q. Can they go now safely? — A. Y'es, sir; no resistance at all now. Q. Do you attribute that imt)rovement to Dr. Mott's care, diligence, and judgment in the execution of his office? — A. Y'es, sir; and the es- tablishment of these small distilleries. Q. Is Dr. Mott a man of high character ? — A. Y'es, sir. Q. For integrity and truth? — A. Y'es, sir; I have heard him very highly spoken of by all clas.>-es of people in our section of the country as an officer. Q. Y^ou say you were once a storekeeper? — A. I am, sir; but a store- keeper not on duty, and have not l)een on duty for eight or nine months. Q. Will you stat«^ with whom you last were storekeeper ? — A. At the distillery of Gerard Laiel. Q. Did your .son-in-law become interested in that distillery while you were there as a storekeeper? — A. Yes, sir. 346 COLLECTIOX OF INTERNAL REVENUE IN Q. You had beeu tliere as a storekeeper a good wbile before? — A. Yes, sir. Q. How loug did you remain tliere after lie became interested ? — A. Only a few months. Q. Then you were taken off duty, and have not been on since? — A. I have not been on since ; up, sir. Q. Do you know D. C. Pearson, who was a witness on the stand this niorniug' * — A. I do. Q. Do you know the character he bears in the community in which he now lives ? — A. 1 think I do. Q. You both live in the same town ? — A. Yes, sir. Q. Will you state what it is? — A. It is ,yood. Q. Is it very high? — A. A^es, sir; I think so. Q. Is it high among- all classes of people? — A. Yes, sir. Q. You have heard, of course, tioating rumors or attacks upon him, as you have upon other revenue officers ? — A. Oh! Yes, sir. Q. Are these rumors uiiou Mr. Pearson credited at all? — A. I think not. Q. He has been a very active politician ? — A. Very. Q. liepublican ? — A. Yes, sir. Q. Before he was a revenue officer, was he very active in politics? — A. Yes, sir; he was the clerk of the court there. Q. The County of Burke, in which you and he reside, is a Democratic county, is it not? — A. Yes, sir; has Itecn for several years. Q. Was it not a Democratic county when Mr. Pearson was elected clerk? — A. I think it was. Q. Was he not elected clerk several times over and over again?— A. I think only twice. Q. Although he is an active partisan Kepublicau, he carried this Democratic county twice ? — A. Yes, sir. Q. About what Democratic majority was there in the county at that time ?— A. About 250 or 500. Q. 8o Mr. Pearson had that to overcome? — A. Yes, sir. Q. That is an evidence of the estimate in which the people of that community hold him ? — A. I think so; he is very po[»ular there in the county. Q. Did he discharge the duties of his office, as clerk, well ? — A. Yes, sir; he discharged the duties well as clerk, in a satisfactory nmnner to every one. Q.' He resigned the office? — A. He resigned the office and accepted a i)osition in the revenue. Crossexaniination by the Chairman: Q. AN'Ikmi \\('\v you first assigned to Laiel's distillery? — A. 1 think it was in ISTO. (^ At what tin)e in 1870? — A. I won't be jxtsitive ; I x\i\uk it was ])robably in I'ebruary, 1S70. (^. How long did you act there ? — A. I acted olf and on until the dis- tilh-ry was nndcr suspension; I thiid< for about eighteen months. (,). When (lid Mr. Ilurr acquire an interest in it? — A. 1 think about the hist of A|»iil a yea i ago — April or May; I will not bepositi\(' — that is just in\ leeoMeetion about it. "(,). 'i'liat w(.nhi be Aj.iil or .May of ISSl ?— A. Yes, sir. How hmg aftei- that did you stay as st<)rekeei)er ? — A. 1 think three months. (). Who rittain belonged to one of the Garrisons ? — A. iSo, sir; I do iu»t know whose names those distilleries were in. 348 COLLECTION OF INTERNAL REVENUE IN Q. What was the common iimU'rstaudiiio- in the community about it? — A. I thought that Mr. Garrison was running- the distilleries, but 1 •do not know whether in his name or whose name they were in. Q. You thought Garrison was running the distillery ? — A. I thought he was. Q. And who was the storekeeper to John Brittain's distillery— the one running in his name, at least ? — A. I know there are two . Were they not all actixe Pepublican ])olitieians in tlie revenue department'? — xV. These raiders? Q. Yes? — A. Xo, sir; occasionally you found a ])emocrat with the raiders. Q. How long did he stay a Democrat ? — A. I just have one or two in iny jiiiiid now. One of them T think was a Deiiu>crat when he went in, then he was ;i i{ei)ublican a long while, an«l recently J have seen him in llie Democratic eonveruHons. (). He is no longer in ollie*'? — A, 1 tliin]< lie is still in oflice, but I do not think' he is on . Do you not think tli;it lit lu'se reveniu' onieers had gon<' (piietly for- ward, and executed tiie duties oftheir ollice, instead of making so much i'liss in politics, that t lieic would not be so much leeHiig against them? — A. I tliiiik thai if I he belter class of our peoph' had discouraged block- •jiding. Itiit rather encouraged these men to i)ut it down, we would not lia\ c Ii:i(| >(» niiicli 1 1 onlilc (}. ^ On ilo iiol ;iii.s\\ cr ni\ (juesl ion. 1 asl these ijieu had goue (juietly forward and executed tlie hiw, and not taken any snch active part in politics, tliere Avouhl not liave l)een so much feeliufi- against them? — A. I have no doubt that tlieir i)olitics encour- nj;ed 'the feelin*;'. Q. Their action as partisans enconraji;ed the feeling- against them. By Mr. Pool. (). Mr. Burr was your son-in law ? — A. Yes, sir. Q. You said that the distillery was ]»ut u])on your land foi- conven- ience if — A. Y^es, sir. Q. ^Vhat convenience was it; was there not a mill close by :' — A. Y'es^ sir; a mill close by, and grain, and unn-h more convenient to town. Q. And it was more convenient to the town than if it had l)een on Mr. Laiel's land ?— A. Y'es, sir. Q. How far does .Mr. Laiel live from town? — A. Four miles from town. Q. How near was this to the town ? — A. Three quarters of a niile. Q. Then ii: was more convenient, more easy to get grain, and nearer to town ? — A. Yes, sir. Q. And that is the convenience of which you spoke ? — A. Y'es, sir. Q. Y^ou do not mean that it was put there at your instance — for your convenience? — A. Xo, sir; not particularly for my convenience. Of course, though, it was much more convenient for me. J. R. Henderson sworn and examined for the governnuMit: By the Chairman : Question. Wiiere do you reside? — Answer. Two miles abo\'e Wilkes - boro'. Q. AVhat is your business now"? — A. I am a storekeeper and ganger- at this time. Q. For whom! — A. J. R. Coondjs. Q. How long have you been storekeeper and ganger! — A. Since the 13th or 15th of October, 1SG9, the date when I was assigned there, until some time in 1874. Q. ^Vere you eiigaged at any time as a revenue officer befort. Q. Was there ever an investigation made that you know of about it? — A. Yes, sir. Q. AVho investigated it? — A. Mr. Kellogg. Q. AVhat thai wcic loose in their business, and know that THE SIXTH DISTRICT OF NORTH CAROLINA. 351 t was fVe(|ueiitly charged that they divided their salary — that they were rather loose. Q. Did yon hear that storekeepers had as.sisted in reiiioviii;^- wlii.sky from the cistern rooms f — A. Yes, sir; I have heard sncli rei»ort.s as that. Q. Can yon give the names of the parties who were charged with it? — A. No, sir; I cannot. Q. What were the reports; give ns some ])articnlais of the rejxnts? — A. Well, sir, I had talks with some storekeepers that had been loose in the bnsiness, and prol)ably allowed the distiller to remove the whisky withont paying the taxes. Q. They had private dealings Mith the distillers? — A. Yes, sii. Q. Do yon know of any tnbs being cnt down, up in that conntry wdien Mr. Kellogg was expected to visit the country? — A. I do not know; there was a survey ordered there once — I don't know whether before Mr. Kellogg came up, or directly afterwards — and a new survey of ail the distilleries in that country was nnide. Some tubs were coii- sidered too large and some were not large enough — not as large as the law allowed. Q. What did that survey result in as a general rule? — A. The tub is allowed to hold sixty gallons of water to the bushel of mash. If the tub holds over sixty gallons, the distiller could use more meal; if it holds uiuler he could not use his meal, because the mash would be too thick; if it was over and it was too thin he could put in more meal and keep it at the same gravity. Q. What was the result of that survey — did it result in a cutting down of the tubs? — A. [ believe some of the tuljs were cut down ; but very little, though. Q. Did Capt. Peden go around and examine things when it was heard Mr. Kellogg was coming? — A. I don't know, sir, Q. He was the officer that made this survey ? — A. He Mas not the officer who made the first survey. 1 think he was on duty when Mr. Kellogg came. Q. How is the state of things up there in that country? — A. AVhat do you allude to? Q. I jnean the feeling toward the re^'enne officers executing the law, and so on? — A. The feeling toward the revenue officers is not as bitter as it has been there. Very little is said now in regard to the revenue when a raid is made at this time on the distillers; there is very little blockad- ing going on, if any. There used to be a great deal of talk with the ])eople when a distillery was cut down. They generallj' ran everywhere telling each other that the officers Avere coming. But there is veiy little said about that now. Q. Where was most of the blockade distilling done in Wilkes County ? — A, In the Brushy Mountains, south of Wilkesboro, on Hunt- ing Creek, or rather southeast, and there on jNIulberry, north about nine uules and west about nhie miles. Q. Was this illicit distilling confined to any particular .party ? — A. Ko, sir. Q. All were included in it without regard to politics? — A. 1 believe so. Q. Was resistance to the officers, if any took place, confined to any political i)arty ? — A. Xot in every instance. The lie])nblicans sometimes resisted the officers. Q. Were the IJepublicans up there as a general rule like they were in other parts of the country — strong party men .' — A. The officers as a 352 COLLECTION OF INTERNAL REVENUE IN general thing: were Republicans. There Avere some exceptions ; one of the raiders 1 knew to be a Democrat. Q. Were they active party men, working lor their party ? — A. Work- ing as Democrats for their party ? Q. Xo; were they for the liei)ub]icans ? — A. Oh, yes, most of the officers that are Republicans are active men working for their party. Q. Did the revenue department run the politics of that country, so far as its policy, candidates, etc., were concerued ? — A. To some extent. Q. That is so all over the district, so far as you know? — A. I cannot give you any ytositive answer out of my county. The distillers are gen- erally the leading men of the party, therefore they have a great deal to do in shai)ing things. Q. If the officers had not been active party men ; had not been work- ing for their party so much, would there not have been less feeling against them? — A. I cannot tell that, because the Republicans got as mad when a distillery was cut up as the Democrats. That was the general feeling against the revenue. All parties felt very bitter at one time against them. Q. This feeling was from all parties! — A. Yes, sir. Q. Would not that feeling have been a little less bitter A. (Inter- rupting) I do not think an officer could have done his duty and had the good will of anybody when I first went in. Q. Withcmt regard to his politics !^A. Without regard to his poli- tics. I went there under Mr. Wylie. There had been one deputy's barn burned up, and another notified that if he ever moved any more, to take the conseijuences; another knocked into a slop-vat, and the distdler tried to turn the slop out on him; and one deputy killed. Q. Who was that that w^as knocked into the slop-vat f — A. Mr. Sprin- kle, from Charlotte. Q. AVho was the distiller? — A. I cannot call his name just now. I arrested him after that. Q. Who was killed"? — A. I forget his name; he was killed before I went into the service. And when I went there Wylie said to me, if I went there ami executed the law he would give me a deputy's position; that he never had a man he could get to execute the law tliere, and he warned me that I took my life in my hand when I went there. (^. And you went ? — A. I did. Q. And did your duty? — A. 1 did. Q. And you are here yet? — A. I am here yet; and I made some friends while executing it. (}. You became a citizen of that county and bought some ])roi)erty there '? — A. Yes, sir. Cross-examination by Mr. Pool: Q. ^Ir. Kellogg told you that lie had recommended ^Mr. Longenour's HMiioval ? — A. Yes, sir. ii. Was lie removed? — A. lie was, from that distillery. (^>. ]Mi'. Kellogg told y(»u that he thought, ai-ty could not. (^. ."Mr. Kellogg was a revenne/ollicer ? — A. Yes, sir. (^. Do you know he reportcil the facts about the LMH) gallons that were made there on that testimony ? — A. I — A. Yes, sir. Q. Did you know when Dr. Mott was turned out himself? — A. Yes, sir. Q. When was that ? — A. It was in 1874 or 1875. Q. It was in 1875. — A. I think probably it was. Q. Was- this conversation before or after Dr. Mott was turned out of the ofiice '? — A. I could not state exactly whether it was before or after ; it has been some time ; I could not be i)ositive. Q. You stated that he said he had first intended to have Dr. ]\[ott turned out, but after investigating it he found it was all bosh ? — A. On those accounts he intimated that he had Dr. Mott. He came to me privately and asked me if I had signed any ; 1 told him I had not signed any. I never had signed any i)ay as deputy collector, except one month that I worked. He mentioned several that had signed, and he said he expected to prosecute them. He talked to me, and to some of us officers, and then afterwards he told me that those accounts were all bosh that were put in. Q. He told you, as I understand, that he thought at first he intended to have Dr. Mott turned out of office'? — A. Yes, sir. Q. But after he investigated it he found they were all bosh? — A. He said they never paid any money on them. Q. ])o you recollect Avhether Dr. Mott bad been turned out l)efore or at the time of this conversation"? — A. I cannot; I cannot state posi- tively, because Dr. Mott was out such a short time. By Mr. Pool : Q. I understand you to have had two conversations with Mr. Crane ? — A. Yes, sir. Q. At which conversations he said he had the figures on Dr. Mott, and was going to try and have him turned out I — A. Yes, sir. By the Chairman : Q. Tbat is not the way ; but he said at first that he intended to have him turned out, but after he investigated it he found it was all bosh. — A. Of course it was two different times. That was the way I meant. It would have been impossible for him to have investigated it while he was talking to me. By Mr. Pool : Q. There were then two conversations you state now ? — A. Yes, sir. 356 COLLECTION OF INTERNAL REVENUE IN Q. After the tirst conversation he said he had tliose things against Dr. Mott f— A. Yes, sir. Q. lUit afterwards, in the second conversation you liad with him, he said tliat upon lurther investigation he found it was all bosh ! — A. YeSy sir. Q. And that included the Kestler vouchers with others? — A. It in- cluded tljat class of vouchers. Q. Dr. Mott was restored f — A. Y"es, sir. J. J. Mott was sworn and examined. By Mr. Pool : Question. Where do you reside? — Answer. Statesville, jSTorth Caro- lina. Q. Y'ou were the collector of revenue in the sixth district of Xortb Carolina? — A. I was. Q. When did you go into the sixth district? — A. In the spring of '72. Q. Then jou continued to be collector until within the last two months? — A. Yes, sir. Q. Had you any acquaintance with the internal revenue service previous to the time you were appointed? — A. Xo, sir; I knew nothing of it whatever. Q. Y^ou were entirely unacquainted with it ? — A. Y'es sir. Q. Was there a supervisor of internal revenue at that time? — A. Yes, sir. Q. Mr. Perry ? — A. Mr. Perry, who lived at Raleigh, and had his head- quarters at Paleigh. Q. ])id he recommend Mr. Clarke as an experienced officer to set your office ijoing, and instinct you? — A. He sent Clarke there. Q. Did he recommend him to you? — A. Yes, sir; as a man who had some experience in rcAenue matters under Collector Young. Q. J)id he recommend him as a person to be relied upon in the mak- ing out of pa])ers and putting matters under way? — A. Y'es, sir; he recommended him in every sense, except that he was a little inclined to drink. Q. You then ai)i)()inted him your clerk? — A. Yes, sir. Q. Y^ou were then in the midst of the political campaign? — A. The cam])aign commenced soon afterwards. That was in the spring of ISTU. Tlie cam])aign ijommenced soon after that, and was actively carried on in North Carolina dujing tlmt year. I took ])art in it and left the a.ftairs of the office piin -ipally in tlie hands of Mr. Chirke. Q. Did lie prei)are the pa]>ers that were necessary for the routine work of the ()ffi(;e? — A. He did all the routine of the office. I only snpeivised tlie ai)i)ointment of officers and assigned them to their duty; told tliem what to do, generally kept th(i run of that. (}. All along through that year all the formal ])apers and reports were mad(; out by him? — A, There are a great many reports. Clarke was the only clerk I had, and he made out all the accounts and rei)orts, and everythnig of that sort that was necessary to keep up with the reciuire- menls of the office here at Washington. (^. Did yon sign them without investigation? — A. Usually when I signetl them at all it was without in\'estigation. Sometimes they were sigiu'd in lihiiik. That has been a long tiiiui ago, and I (»se of keeping up his aceouiits here. THE SIXTH DISTRICT OF NORTH CAROLINA. 357 Q. Practicallv for a time you left everything;' in liis liaiid.s, and fol- lowed his directions, in all these formal matters — up to a certain time? — A. He did nil tluit \\()rk; 1 authorized Mr, ('larketo do all that work. Q. You had a reliance u])on him, based ui)on the reconunendation 'of the supervisior? — A. Yes, sir; and also with the understandinj^- that it is customary for clerks to sij^ii other names in our business. Q. You understood that that was a general custom in the ser\ice? — A. Yes, sir. That custom ])re>'ails in a good many oflices in the country to this day. It is absolutely ne(;essary for collectors, to delegate those l^owers to some one in a large office. The collector cannot possibly do it, unless his whole time is employed there. Q. These Kestler vouchers were in the character of the business that Mas left to Mr. Clarke in that way"? — A. Yes, sir. Q. When you first heard of this Kestler ndstake, did yon take imme- diate steps to correct it?— A. I heard of the Kestler matter iirst in the rei)ort of Mr. Crane, I think — this report that I have seen here since I came, and to which I rejdied at the time. I had no knowledge of it be- fore that. I emi)loyed these men from time to time, and changed them. There were a fcAv of them, you know, who took places, and then we changed, and put them in the other i)laces. Kestler was recommended to me, or I was requested by some political friends in Salisbury to give Mr. Kestler work. He came up there in the fall of 1872, and remained, I thitdx:, about ten days. I found he was not the man who would suit the business — that he was not only feeble, but had but one arm — for the active work that would be required of a de])uty in those days. It was necessary that he should be a vigorous man. There was a good deal of op])osition to the law, and it was much easier for a strong robust man to execute it than a weak one. For some reason or another, he re- turned home. I was busy about the time; I only remember that I de- cided not to keep him, and put some one else to do the work, and it went on in that way. The other man did the work in the regular way. Q. Who was the other man; Mr. W^alker? — A. Yes, sir; he acted as dei)uty during that period. ]\Iy recollection is, in some instances he acted as deputy ])revious to that. He was actively at work at the time, engaged in traveling about the country, from place to i)lace, as a ganger, and in doing the work. He being an efficient man in that way, he was required to police around for the wagons that were conveying illicit spirits and tobacco through that country at that time. A great I found afterwards. Q. Did you i)ay your deputies before all the vouchers were sent in ? — A. Y"es, sir ; that was necessarily so. In that country a great many of the deputies had no money, and we were obliged toit. 1 came on to Washington alter I heard 1 was reiiKtved, iiiid inquired ai)()ut tlu; matter. I had hearenses that we have been talking about? — A. The office assess- ment was nuule alter our having had to ])ay a good deal i)ei'sonally from time to tin)e in one way and another for printing, to a messenger in the (•nice, and for check l)ooks. I had fnrnished the check book for a long time. i)ut, as the business iiua-eased, it became more expensive, and linally, along about tiie time of the assessment, or the year ])reviously, 1 had to i>ay .'r'L*.") ajticce lor the cluH'k books; the bank wouUl not fur- nish them, and wf talked about it at theollice; the office men had been ic(|uii('(l to i)ay on t hcse other matters, the messenger and other e>cpense8 tliat liail not been alIow«'d by the government, ^fliis messenger was Kept tluic Ibr the benefit of the storekeepers. lie kept their blanks, and liaressed myself to every one of tlieni saying;', I think — that is my recollection of it — that they were not recfuired to iiay ; that the committee did not want it unless it Avas paid willingly. I wanted tliem to understand that, and so expressed it in the letter, and that if they did not accede to it that in no sense wouhl their standing be interfered with by their refusal, either at my oftice or at the department. Q- So you left it entirely oi)tional with them to ])ay it or not ? — A. Yes, sir. I want to state further in connection with chese assessments in this State and the amount that was raised, that the amount that had been expended in North Carolina generally to make a campaign there, under the disadvantages the Republicans have to contend with in that State — that the amount necessary for those puri)Oses was about >'-r»,()00. It takes about that to make an ordinary cami)aign, in the way that it had been conducted in that State; and in making these assessments 1 was governed by the amount that I thought necessary to make that campaign. Q. Passing from that subject, I will call your attention to these re- ports about storekeepers dividing their pay with distillery. Did you make efforts to find out any case of that kind l — A. Oh, yes ; it was a matter of solicitude to me there on account of the reports, rumors, and slanders which cropjied up from time to time with regard to it, and on that account I tried to conduct matters so as to give no ground for such rumors and complaints. I had frequent talks with the Commissioner of Internal Eevenue about it, and tried to arrange matters in the district so as to avoid any sus])icion on the part of the public, or of any one, in regard to the matter, Q. Did you try to fiiul out a case? — A. Y'es, we tried to find it out fre(piently. Q. Was it your purpose to i)rosecute the matter if you found out a case? — A. Oh, yes, sir; we would have prosecuted it if we had known it. I never found any one. I never could get any evidence of it that could be depended upon. There were some causes that ])robably gave rise to those suspicions at the start. For instance, these distillers would come and ask for storekeepers, and would not want to run without cer- tain storekeepers; at least object to some that were sent to them. We attributed it to that more than anything else. The disposition on the part of the distiller to have some one on his premises who would look after his affairs there, in that country, and with whom he was acquainted ; a triend whom he thought would be disposed to see and feel that liis business was being of value to him. Q. Do these storekeepers help the distillers, who are generally igno- rant men, to nmke up their returns and things of that sort? — A. Y'es, sir; not only that, but watch the hands about the distillery, and give orders probably about what should be done, and looked after the work, that it was done eftectively. Most of the distillers are farmers, and are not usually at the distilleries. Q. It is the business of a storekeeper to be there all the time? — A. Y^es, sir; a storekeeper has to be there all the time in their business. These farmers who are distillers like to ha^e these storekeepers take an interest in their matters, and see that the work went on right, and look after their stock about the distillery; that it is attended to by the 364 COLLECTION OF IXTERNAL REVENUE IN liauds i)roi)erly ; aud that the distillery was in every way operated with advaiitafje to the distiller. Every distiller naturally was inclined to have some man witli whom he was acquainted, and who he knew was not lazy. I attribute the desire of the distillers to have certain store- keepers more to that than to any other cause. I know that many storc- kee]iers were accused of dividing their i)ay who I am satisfied did not do it. Whenever a storekeeper was appointed in the ue>ti()M. Soiiiel iiing has beeu slated iu regard to the treatment of the ollieers in the l''ed«'ral eouits, when theic were i)rose(;utions ibr vio- lafi(»ns of the law, an an ordtM' that you issued iu conscKpumee, ami the action of t lie ( 'ommissionei' upon it; ]>lease state what that was. — Answer. At the court, I think it was last ( )ctol>er, 1 had understood THE SIXTH DISTRICT OF NORTH CAROLINA. 365 that certain lawyers had denounced some of the officers who were there as witnesses, in very severe teiins, and in a way that I thought was un- warranted, in fact, outrageous. I thought about it, and conchided that if they were to be treated in that way, I would try to avoid tlu'ir appear- ing in that court. It had a bad effect, and was cak^ulated to ortion of it; and besides that, the little stills were increasing, and he drew the plans of those distilleries, and was allowed to receive pay from the distillers for those i)lans in addition to the amount that the government allowed him. as dei^uty. I was receiving about in the neigiiborhood of $3,000 a year salary myself, and I would hardly make any contract with a deputy to pay him over and al)ove any amount that the government would allow. We could have got plenty of men all through the country to have taken Eamsey's position at the salary that he was paid bj^ the government. Q. His allowance from June 30, 1S72, up to May 20, 1873, was $100 a month from the government? — A. Yes, sir. Q. And from May 20, 1873, to June 30, 1873, at $125 a month ?— A. I think so. 366 COLLECTION OF INTERNAL REVENUE IN Q. He claims tliat you ought to Lave paid bim $150 during the whole time? — A. I do not remember what he claims in his answer to my com- plaint in the suit that we have. I do not remember what amount it is, but, as I remember, he claimed for a portion of the time $50 a month, or that I agreed to pay him fifty per cent., as he states, of his salary. Q. This would increase it by fifty per cent. I — A. Yes, sir. Q. You made no such agreement with liim? — A. No; I made no such agreement with him. I found out that IJamsey was behind on his list. Q. What do you mean by that? — A. That he had collected more than his salary amounted to, and he was dismissed. Q. You mean, he had collected, and not paid over, more than his salary amounted to — retaining more than his salary amounted to f — A. Yes, sir. Q. He was dismissed, and then what? — A. I sent a gentleman, Mr. Horah, to make a settlement with him, and Mr. Horah drew up a settle- ment of account according to the data I had furnished him, and Mr. llamsey acknowledged to Horah — he told me ou his return — the indebt- edness, and that he would pay it as soon as he got some moiety dues that were owed to him at the department. Q. That is what Mr. Horah told you? — A. He did. I waited on him for several months. I do not remember how long, and sued him, and he then brought in this action on the vouchers, as I understood, as a counter-claim. I think that was all an afterthought on his part, after consultatiou with his counsel. Q. You sent in his vouchers for a hundred and fifty dollars a month ! — A. The original vouchers, yes, sir; they were sent in for that. Q. By Mr. Clarke ? — A. Yes, sir. Q. And the government refused to allow any more thau the regular allowance made on the 30th of June preceding, and he brought in as au offset in tlie suit, the balance between what the government allowed, and what he claimed you agreed to pay him ? — A. That is what I under- stood at the time. (}. And that is the matter between you? — A. Yes, sir; and afterwards in evidence he makes this statement that he made here, that I was to give him 50 per cent, of the amount he received as salary. (}. That is, you were to give him a $150 a month instead of a $100 a month?— A. Yes, sir. Q. Have you nothing further to state on that subject? I will be glad if you will exi»lain some of the troubles in your way of executing the law and Mdministcring the collection of internal revenue in that district, resulting frcun ])oIiti(;al action — the. action of the opposite party? — A. The ])urpos«'of the Democratic ]»iuty, as I understoown out of that. 1( had become a sort of licensed system of abus(^ in the community and country around there. Q, Was that an obstruction to tiie ])roper ))erl'oiiuance of duty by your subordinates? — A. Oii, ncs, sir; it sul)jecled the ollicers to insult and suspicion, and incensed those who were engaged in illicit distilling, and encouraged tliciu to stiiiid out against the law, and logo on in the lace (»r the law. <^> ( i i\ (• t liciii an inipi fssioii that t he coliticians, that it ought not to be a party matter, and that laws of that kind ought to be enforced by the members of both parties. There was a feeling of that sort among the ordinary class of good peoi)le in the Democratic party, and I felt there was some force in that kind of argument, and that was the reason Avhy I was driven to that course, and i)ursued it. Q. It had a good effect? — A. Yes, sir; it relieved that feeling among the ordinary class of people 1 speak of, and in that way had a good effect. Q. Do you recollect that one of the charges made by the newspai)ers ixnd stum[) speakers was that poor men could not ])ut up stills, because it recjuired too large a bond — the required capacity being so high. Was that one of the charges against the revenue system? — A. Y^es, sir; that was one of the charges. Q. Well, what was done? — /\. I had some consultation with the Com- missioner of Internal Revenue, and it was agreed that the capacity of stills should be lowered. Q. W hat was the required capacity before this — the minimum capacity, I mean ? — A. Six bushels, I think. Q. Then it was reduced to three bushels as the minimum ? — A.. About three and a half; but asufticient amount to pay the expenses of the dis- tillery, so that the government might not lose anything by its heing operated. Q. Did that result in a great increase of legal distilleries, and in a decrease of illegal distilleries? — A. Yes; the illegal distillers went to work and put up legal distilleries. Q. Is it not a matter of fact that those who were running legal dis- tilleries are opposed to the running of illicit distilleries around there? — A. Yes, sir; it interferes with their business by putting up the price of grain, aud then it gives the illicit distiller the advantage in not paying- taxes. Q. So that the distiller is a sort of police in the neighborhood against illegal ones ? — A. Y"es ; it is a protection against illegal ones, Q. And after the reduction of this capacity the number of small legal distilleries increased, and you found the illegal distilleries decreased ? — A. Yes, sir. Q. Has that system continued till now ? — A. Y'es, sir; it has obtained ii great deal there, and worked along until the illicit distilleries are pretty well gone out. db8 COLLFX'TION OF INTERNAL REVENUE 1in Q. Does there seem to be a better feeling iu the community, or not ? — A. .Oh, yes, sir; very great, from what there was several years ago. The i)eoi)le have become more reconciled to the law, and many good people have engaged iu distilling under the law. They have become familiarized with the operations of the revenue system ; and through association with the olticers of the government and their friends, have come to understand it better, and it has had a good effect. Q. But it increased the expenses of the district, did it not? — A. Yes; every additional officer employed makes more expense. Q. The percentage has been greatly increased — the percentage of col- lections — has it not ? — A. It was increased in proportion ; and though increased in ]n^oportion, the revenue has also increased for the govern- ment. Q. You mean the Treasury got more money by that system than it did by the former one? — A. Y"es, sir; while it sas'ed i^rosecutions in the courts and expenses in that way. Q. A good deal has been said here about the division of distilleries — a distillery of six-bushel capacity into two, three and a half bushels; that some parties took advantage of this reduction to divide up the dis- tilleries which they were running before? — A. Yes; that is what is termed by politcians the " multiplication of stills." Q. In how many instances did that occur iu the sixth district ? — A. I do not thiidv there were very many. AYe investigated the matter, looked into it. and found that the distillers gave as an excuse that they could not oi»erate the stills the year around except with water of a certain temperature, and that they had to put their distilleries close up to the heads of streams with a view to continuing the business through the hot summer months. I know that was the case with " Daniels's" distilleries. There was a complaint at the office and at the department over the num- ber of stills that Daniels had. Q. You mean that in the summer time the lack of water made it de- sirable to a distiller to have two stills, one higher up and one lower down a stream, so that he could use the water twice ? — A. He could use the water twice in some respects. I am not very familiar with the mode of distilling, but I think a portion of the water that is used has to be of a certain temperature to make a good "turnout" of spirits, a.s they call it; and that they can get that temperature the year around iu sutlicient quantity only by ha\ing the stills near the head of the streams — near tiie fountain. That was one of the causes, and the prin- cipal cause in the Daniels case, because it was the purpose of the d<'l)artment to interfere with him, and we found out we could not do it under his explanation. The agents went out there and looked into it, cxainined it, and that was tlu' result. Another case was where men running distilleries, being jjoor, could not give Avarehousing bonds. TIm'N' could get more good se('urity on a small anu>unt of stock than they (;ould get on the consolidate*! amount of two distilleries. i). That is, they (onld \i;i\(' two small bonds easier than one large one? — A. Yes, sii'. (}. Those bonds had to be gixcn monthly, had they not '! — A. Yes, sir. (}. Tiieie was an excuse gi\('ii in connection with the stock or hogs that tiiey owned '/ — A. \'es, sir; t liey conii)hiined t hat I he_\ ran less risk liy di\ iding Iheir stock u|> at two distineries. (}. ^ oil mean as slo(d<, cattle, and hogs? — A. \'es; hogs are atfected in our country with cholera. 'I'here iias been a gicat deal of it iu the last ten years tlicre. It l)realaid on it, aiul if it was withdrawn from time to time, as the distiller wished to sell or use it, he paid the taxes on withdrawing it ? — A. Y'es, sii-. Q. It was only in c.ises of the suspension of distilling operations that the warehouses went under the charge of the general storekeeper, was it ? — A . When the storekeeper was there, there was no call for a general storekeeper. Q. The storekeeper staid there and watched while the liquor was being made? — A. Yes; he withdrew the spirits when desired Just in the way the general storekeeper did after the distillery suspended. Q. The general storekeeper came in after suspension f — A. Y'es, sir. Q. The regular storekeeper was there while the distillery was in op- eration ? — A. The purpose of creating the office of general storekeeper was for the reason that it was less expense to the government. Q. Because the general storekeeper could have a good many distil- leries under his charge at the same time ? — A. Yes, sir. Q. Mr. Drake was a general storekeeper residing in Statesville ? — A. Y'es, sir. Q. Which Mr. Drake was it!— A. E. B. Drake. Q. What aged man is he ? — A. Mr. Drake is now sixty-eight years ohl, I think near seventy. S. Mis. IIG 24 370 COLLECTION OF INTERNAL RLVENUE IN Q. Has he been a great while iu vStatesville ? — A. He has been living there about thirty years, I think. Q. Do you recollect that he has been editor of the Statesville Ameri- can for about twenty or thirty years ? — A. Yes, sir. Q. Is he a man of high character? — A. Very high character. Q, Did he discharge properly the duties of a general storekee])er while he was holding the office ? — A. I understand it so. No complaint was heard. He kept a horse and sulky there in that place. He went out to his division by railroad, but used this horse and sulky when it was more convenient to go by ]»rivate conveyance. There were com- plaints, 1 understood, about the town there — I supi)0se on the jnirt of somebody that wanted his place — that he delegated his work to others. I do not think that that was the case. I think it was done by him only because he could not visit two places at one time. When an order came into the ofHce for the withdawal of whisky, and tax-paid stamps, he could not go to both places at once. -^ Q. Through what extent of country did his division extend ? — A. I do not remember his division ; I think, though, it was the eastern sec- tion of the district, and several counties. Q. Did it extencd 25 or 30 miles ? — A. Yes, sir ; I think some of his distilleries were nearly 40 miles from the oftice. Q. Then if he should have a requisition from a distiller to take out spirits in one end of the district, and another one in the district on the same day also wanted to withdraw spirits, it was impossible for him to go to both places except within several days ? — A. Yes, sir; impossi- ble to reach both places at the same time, and satisfy the distillers. Q. Was it peimissible, under such circumstances, for him to delegate, with your i)ei'misMon, some i)ropcr ofticer to take his i)lace at one of his distilleries ? — A. He was allowed by the oflice to do this for the accom- modation of the distiller. Q. Do you mean by the oflice, the bureau here in Washington? — A, No, sir; my ofticc. Q. There was no law prohibiting it? — A. 1 do not think that it was strictly in accordance with the regulations, but there being no fraud in it, no i)urpose to di'ceive anybody, it being necessary for their accom- modation tog(i to ihe-edistillers when they made sales, that we thought it best to work it in the way we did, and allowed it. Q. Did you allow ihat juivilege to other general storekeepers! — A. Yes, sir; to all of Ihem. Q. Was there any instance of fraud upon the government growing tmt of it? — A. None th it 1 know of. Q. None ever reitortcd to you! — A. Except in the cas(^ of S'3tzer, at (Jlark's distillery <1own there, where it turne«l out afterwards that there was something wrong with the distillery. (I. Was that the insiance where it was the first act of the general store- k men I o| .lames II. Ilai lis, a colored man, in your district, and about his being absent from duly making speeches in the canvass; state what you have to Hiy about tlie matter. — A. J Ian is is a colored man in thai State whom we think very well of there. We had forsome time thought it would be a go.»d idea to employ a colored man iu thedis- liict lor the piirjiose of getting anytliing that Wie colored peojile might kiio.v al»oiit what was going on in tiie way of illicit distilling, or illicit THE SIXTH DISTRICT OF NORTH CAROLINA. 371 sales of tobacco or whisky, and it was moi'e in connection with the sales of whisky and tobacco that Harris was employed. Q. Yon mean illegal sales? — A. Any illicit sales. Along- the South Oarolina line there are no illicit distilleries, but parts of the eastern end of tlie district have always been a sort of depot for illicit traders in tobacco and whisky. We have had great ditilieidty in getting at any- thing of that kind that would happen there in that locality. That was in the county of Union, more especially, and Cabarrus, Mecklenburg, and (Jlevelai)d. I had an idea of emi)loying a colored man, with a view of getting at some of these things, and Harris, having applied to me for ii i)lace, I gave it to him. Q. Was he well known among colored peo])le generally? — A. Yes, sir. Q. And had their confidence? — A. Y^es; I thought he could give me isorae information that I w^anted, and I gave him the place. He did go ;*about through that district to Union, Cleveland, Shelby, Lincolnton, "Charlotte, Concord, Salisbury, and Mocksville, I think, and he gave me from ti'ue to time — would write me anything that he would learn in re- gard to those matters. I told him to report to me personally, that if he found out anything to let me know about it; and he traveled around in the district in that way. Q. He made politieal speeches occasionally, did he not? — A. Yes, .t>ir. He is a fine politieal talker, and in the latter part of his service a .campaign was going on, and he made some speeches. Q. Coidd he not have nuide speeches without neglecting his duties? — A. Yes, sir; he could have facilitated those duties by gettiug crowds to listen to him. He had a better opportunity to hear anything that •wa^ going on in that way. Q. By talking around among the crowd afterwards? — A. Yes, sir. Q. It was said that he was engaged at one time outside of the sixth district in making political si)eeches. — A. I never heard that. Ho migh1> have made a speech or two at home; he would go home to llaleigh now and then, and might have made speeches there, Q. Was there a time there when he was off without pay? — A. Yes; there were a series of appointments in the f.ill of 1880, and with a view to going into the canvass in that section of the State, he did not do duty as deputy while he made speeches; I mean, tiie canvass that he made was while he was not employed. Q. He was not paid as a deputy for the time he was in this canvass ! — A. After he went oti' he made some speeches; stdl he was a deputy, but not in regular line of appointment for a few days. He was not on duty when he was making the regular canvass; he was relieved. Q. The vouchers you sent in for his name showed that for a certain length of time no vouelier wis sent in for him for piiv ; what time was that ? — A. It was during the month of October, just preceding the elec- tion. Q. The Commissioner wrote a letter to your sub u'dinate at one time inquiring in regard to these assessments for office e.\:i)enses not allowed by the government. At another time he wrote a letter to your subor- .'' L. M. Davis, York Institute, N. C, , 1S30: "I have not paid anytliini,' to defray the above-named expenses." Robert R. Ray, Charlotte, — .December 13, 1'^SO: "I have contributed to the iu- cidental expenses of the collector's otfice » * » oue month's salary, say, |'JU." William J. Coite, Statesville, December 18,1830: " I regret bt lug obliged to rftjdy, that not having kepr any memorandum of such amounts, I am unable to positively state them. Some time during January, 1879, a boy was eni])ioy(Ml to do work in our ottice (errands, sweeping, &c.), no other means of paying him being provided, we office deputies and clerks made up the amount l>y eontriljution ; tliis was continued until about October, 1879, where, for this and other oftice expenses not otherwise pro- vided for, other officers were asked to help in these payments. Fiom January to October, 1879, I think I paid $2 per month direct to the boy employed, as my share, being in all, probably, $18. I have no recollection of having contiil>uted anything after October, 1879."" J. Frank Davis, Statesville, , December 18,1880: "I have paid for tables and files for ofHcial payjeiH the sum of ijl.^>. I have also expended, as my part of wages 'paid to the office messenger, about $12 or |15 up to July 1, 1880. These amounts were iiil paid from my private money." M. W. Jewett, Dallas, X. C, December 18, 1880: "I have never contributed any-' thing to defray the incidental expenses of the office of the collector." H. W. Dean, Statesville, , December 18, 1880: "I have expendeil nothing for such expenses." A. B. Gillespie, Statesville, , December 18, 1880: '"I have never contributed anything to defray the incidental expenses of the oftice of the collector." Franklin (i. Thorpe, p]agle Mills, X. C, December 18, 1830 : " I did not furnish any- thing in the last campaign, as I was not then storekeeper and ganger." Richard Williams, Morgauton, N. C, December 18, 1880: "I have contributed nothing, as I have not been on duty." H. C. Snipes, Morganton, N. C, December 19, 1880: "I have never been assigned to duty yet, conse(iuently have contribirted nothing." J. B. Richards, Gastouia, X. C, December 20, 18313: " I have never contributed any- thing for this purpose." John F. Aydlotte, Buffalo Paper Mill, X. C, December 20, 1830: "I have not con- tributed anything to office of the sixth collection district of Xorth Carolina for inci- dental expenses. I have never been asked to contribute anything." T. J. Dula, Wilkesborough, , December 20, 1880 : " I have contributed nothing for such purposes." W. Skidmore, Mount Holly, N. C, December 20, 1880: "I have not contributed Jinylhing toward the object named, nor have I been called upon to do so." M. L. WhiMey, Old Fort, X. C, December 20, 1330: "I requested the collector to pay iji25 for me to the Finance Committee for Republican funds in defraying election exi>enses; not having tlie money myself, and not getting ray June pay, I was unable to advance the amount, and asked the collector to do so for me." P. F. Langenour, Panther Creek, X''. C, December 21), 1330: "I have contributed only $1 to defray the incidental expenses of ofticti of the collector." Jere Smith, Taylorsville, X. C, December 20, 1830: "I have not contributed any lor the above-mentioned expenses." W. D. Mason, Fork Church, X. C, December 20, 1830: '' I contributed to defray the expenses of the office * * * the amount of .$88." P. M. Xicks, Hamptonville, X. C, December 20, 1880: "The undersigned has respect- fully to report that he contributed $104 to defray the incidental expenses of the office of the collector." C. L. "Weir, Mocksville, X. C, December 20, 1880: "I have not i)aid anything towards defraying the incidental expenses of the office of the collector." R. J. Williams, Rutherford ton, December 20, 1880: "I have paid nothing to defray incidental expenses of the office of collector.'' J. L. Jones, Panther Creek, X. C, December 21, 1880: "I think the amount is about .$.5." Milton A. Holland, Dallas, X. C, December 21, 1880: "I have not kept a strict account, » * * but I state that I have contributed about .$7.40 to defray the inci- dental expenses of the office of the collector." George H. Brown, Statesville, X. C, December 21, 1880 : " In reply, say that at some- time duiing the latter part of the year 1378, the work of the office having become so o74 COLLECTION OF INTERNAL REVENUE IN large, tliat it was .agreed among the employes of tlie oftice to contriliiite and \r.iy a col oredboy. as a porter or messenger, to clean up the office, hnild fires, and remain dnriug the day to go on errands, &c. He also waited upon Mr. J. F. Davis, one of the clerks,, who had a room and slept in the office bnilding. I kept no memorandum or acconnt of the amount paid, and do not now remember the amount. The whole amount did not exceed $15. Since I have been connected with the office I have also paid for a rough desk for my own convenience — a trifling sum, not exceeding !|3.50. Alouzo C. Mondaj', Coopers, N. C, December 21, 1880: "I have never been asked to contribute anything to defray the incidental expenses of the office of the collector."' G. A. J. Sechler, China Grove, N. C, December 21, 1880: "I have not contributed anything to defray the incidental expenses of the office of the collector, » * * as I never was asked to give anything." George W. Williams, Asheville, N. C, December 21 , 18-:!0 : " I never have contributed one cent to the incidental expenses of the office." W. W. White, , December 21, 1880: "I haven't contributed anything." "W. A. "Williams, Morganton, N. C, December 21, 1880 : " I havt^never been assigned to duty as storekeeper and ganger, conse defray incidental expenses of the office of the collector, * i* * .$7.75." W. B. Lay, Gastonia, N. C, December 22, 1880: "I have kept no account of the amount contributed by me for the incidental expenses of the coltector's office of this (sixth) district of North Carolina, but have contributed a small amount at dittereut times before last June; nothing since then. Would suppose that the total sum so con- tributed would be about $i) or ,$6." C. W. Lourance, Statesville, N. C, December 22, 1880: "The amount conti-ibuted by me was about )Jii. 10, p.iid in tlu collector's office." H. Y. Mott, Statesville, N. C, December 22, 1880: "I respectfully state that I never contributed anything." H. X. Dwire, Statesville, N. C, December 22, 1880: "I have not contributed any- thing to defray the incidental expenses of the otifice of collector." Enoch Rector, Marshall, N. C, December 22, 1880: "At the time I was called upnii by collector Mott to contribute to the incidental ex]>enses of the office, I did not have the funds to pay, and it was generally understood that the westeru district, being \n the mountains, should bear their own expenses. I did all I could for our party during the cam]>aign." A. >L Vail, Mocksville, N. C, December 22, 1880: "It has never been my privilege to contribute anything, as I have only been in the employment of the government, under collector Mott, since the 1st of the present month, consequently I have made none." D. C. Pearson, Morganton, N. C, December 22, 1880: "In conseciuence of my hav- ing jiaid my own cxjicnses as a delegate to Chicago, I was not called upon by the col- lector, lor iic knew of my having defrayed the expenses of a considerable number of delegates to our State convention in addition to my own at Chicago. I also contrib- tited to the expense of the campaign in this county, Caldwell, and McDow<'ll. that adjoin. In a word, I can say truthfully that fioni the beginning to the end of the campaign I contrilnited not less than ijjiGOO." Wade \V. Hampton, Eagle Mills, December 23, 188(1: " I have never been called oiv by the coliiclor of this district to contribute anything tor incidental expenses." I. O. Hart. L(^wisvill. lb-own. Ilami.tonville, N. C, -December 23, 1880: "To the best of my knowl- rdge, 1 have contributefl Init SI." THE SIXTH DISTRICT OF NORTH CAROLINA. 375 W. F. Holland, King's Momitain, N. C, December 23, 1^80: "I am not positive as amount to contributed foi" incidental expenses, as I kept no record, but tliiuk about 15 or $6."' C. T. Colyer, Statesville, December 23, 1880: " The sum paid by me in montlily pay- ments for about eight months amounted to about $15 t<»\vards the messenger's wages." T. L. Shields, Charlotte, N. C, December 23, 1880: "I ha%'e contributed nothing to the present date to defray the incidental expenses of the office of the collector." F. P. Axley, Murphy, , December 23, 1880 :." I have never made any contri- butions for such purposes." W. S. Arnold, Hamptonville, N. C, December 23, 1>^80: "I have not paid anything, from the fact I had not been in business but a few weeks, and have not been called on.'' J. Q. Peden, Wilkes, , December 23, 1880: "I have contributed nothing.'' A. F. Pack, Fork Church, N. C, December 23, 1880: "I bave not contril>ut<'d any- thing to defray the incidental expenses of the office of the collector." R. C. Perkins, Morganton, N. C, December 23, 1880: "I do not understand the meaning of the inquiry, knowing nothing at all of incidental expenses, and never having contributed anything to such account." M. L. Hooper, Williamsburg, X. C, December 23, 1880: "I have the honor to report to your office the amount of .$4 that I contributed to defray ' not the incidental ex- penses proper,' but the extraordinary expenses, not otherwise provided for by the de- partment, as I understood it, of the office of the collector * * *." W. F. Hood, Yadkinville, N. C, December 23, 1880 : "I have never been asked to contribute anything to defray the expenses of the office of the collector." E. Stanly Walton, Morganton, N. C, December 23, 1880: " Have never been called upon by the collector of * * * for contributions to defray the incidental expenses of his office ; consequently have contributed nothing." H. H. Martin, Dallas, \. C, December 24, 1880 : "Made no incidental contribution to defray the expenses of the collector's office." Samuel R. Gudger, Morganton, N. C, December 24, 1880: "Have not been called npon to contribute anything to defray expenses of the office of the collector." A. J. Jenkins, Dallas, N. C, December 24, 1880: "Have not been requested or as- sessed to pay anything for office expenses, contingent or otherwise, since my connec- tion with the revenue department, either by Dr. Mott or any other officer in the internal revenue service." R. C. Bowles, Sweet Home, X. C, December 24, 1830: "Have contributed nothing to defray the incidental expenses of the collector's office." W. C. Myers, Lovelace, N. C, December 24, 1880: "Have not paid any incidental expenses of the collector's office." T. W. Sharpe, Sweet Home, N. C, December 24, l^SO: "Have contribute;! nothing to defray the incidental expenses of the collector's office.'' A. B. Rhyne, Dallas, N. C, December 24, 1880: " I did not contribute anything to the sixth district of North Carolina. I was not requested to contribute anything." D. C. Pearson, Morganton, N. C , December 24, 1880: "I was not on duty at the time, aud was not among those who were called upon to contribute to the expenses of the office at Statesville, N. C." J. H. Pitts, Catawba, N. C, December 24, 1880: " Have never been asked for con- tributions for any purpose," M. Kimbrough, Smith Grove, N. C, December 24, 1830 : " My recollection is that the amount contributed was about .$4." W. C. Morrison, Statesville, N. C, December 24, 1881: " Have contributed the sum of $4 to defray the incidental expenses of the office of the collector.'' Lawson A. Mason, Dallas, X. C, December 24, 1880: "Have no statement of the amount contributed, hence I will refer yon to the collector's office at Statesville, N. C, for information." J. B. Evans, Rutherfordton, N. C, December 24, 1880: "For five or six months I paid 1 per cent, of my salary to defray the incidental expenses of office of the collector, ■* * * amounting to $5 or $6 ; since March last I don't think I have paid anything." J. M. Armstrong, Dallas, N. C, December 24, 1880: "A request was made that I would contribute $1 per mouth or 1 per cent, of my wages to defray an expense of said office, that had not otherwise been paid, and in this wav I paid for said purpose |(;.25." Elbert Wallace, Wilkesboro, N. C, December 24, 1880: " I have never contributed anything to said office for the pnrpose above referred to." 376 COLLECTION OF INTERNAL REVENUE IN 8. P. Ward, Couuty Line, N. C, December 25, 1880 : " I have uot coiitril)iited any- tliing to defray the iiioideutal expenses of the oftice of the collector." E. A. Cobb, Morgaiitoii, N. C, December 25, 1880 : " No recollection of ever being asessed any amount for that purpose." Wade H. Hntiman, Dallas, N. C, December 25, 18&0: "Have never contributed anything to defray the incidental expenses of the collector's otMce." W. S. McKee. Gastonia, N. C, December 25, 1880: " Have never contributed any- thing to defray the incidental expenses of this sixth district of North Carolina." W. H. Hobson, Jerusalem, N. C, December 25, 1880: " Have contributed nothing." L. C. Jennings, Moravian Falls, N. C, December 25, 1880: " Have not contributed anything to defray the incidental expenses of the collector's otifice. * » * Have not been asked." W. H. Rhyne, Dallas, N. C, December 26, 1880: "I was asked to contribute 1 per cent, of my wages, and have not kept any account of the payment. I think about $12." J. N. Hayes, Miller's Creek, N. C, December 27, 1880: " It is between |4 and |6." John. A. Keener, Poor's Ford, N. C, DecemlK'r27, 1880: "I i)ai(l in §17.'<> to pay office expenses in the collector's otHce." B. V. Beal, Lincolnton, N. C, December 27, 1880: "I must say that I have never contributed anything." Julius Britton, Moiganton, N. C, Deceml>er 27, 18-10 : "Contributed nothing to the expt-nses account of the oftice at Statesville, N. C." W.J.Mills, Salisbury, N. C, December 27 1880: "Have not been asked to con- tribute any money to defray the incidental expenses of the office "of the collector." W. M. Nicholson, Morganton, N. C, Decembf-r 27, 1880: " Have never been called on to help to defray ^ai(l expenses, therefore never contributed anyihing for that pur- pose." W. F. Porter, Mulberry, N. C, December 27, 1880: "Have not contributed any- thing to defray the incidental expenses of the collector's office." H. M. Rhyne, Stanley's Creek, N. C, .December 27, 1880: "Never have been asked for any contributions." S. P. Smith, Wilkesborough, N. C, December 27, 1880: " Have neither been called upon nor contributed anything." John M. Taylor, East Bend, N. C, December 27, 1880: "Have contributed nothing." W. M. Walker, Salisbury, N. C, December 27, 1880: "Have not contributed any- thing to defray the incidental expenses of the otlice of the collector." E. Ladd, New Castle, N. C, December 28, 1880: "Have not contributed anything and have not been asked for anything." A. B. Biitner, Smith Grove, N. C, December 28, 1880: " Have kept no account, but think the amount did uot exceed i|5." T. A. Atkins, Eagle Mills, N. C, December 28, 1880: "Have paid in to Dr. J. J. Mott, collector, for incidental expenses the sum of !|1 and no nu)re." S. C. Davis, Huntsville, N. C, Dee mber 28, 1880: "I have contributed $2 towards defraying the incidental expenses of the collector's oftice." H. E. Shore. Red Plains, N. C, December 2"^, 188() : " I have never been asked by f)nr collector to contril)ure anything for pnrjxises referred to, hence have never done so. " Daiiirl S. Summers, Gastiui County, N. C, December 2S, 1880: "I can state not anything up to the i)resent." 1'. A. Little, Catawba, N. C, December 28, 1880: " Have not (contributed anything fr) defray the incinrpose." .1. 1'. Someis, Wilksborongh, N. ('., December 30, 1880: "I have not, nor never have been called upon for anything for the ]Mii'|)()se." .1. IUe\ ins, .lellerson, \. ('., i)e(eml)er :?0, 1880: "I mver eontribnted anything to the oltiee ,it Statesville, I never liiise been asked for a n \ I li i ng yet." THE SIXTH DISTRICT OF NORTH CAROLINA. 377 A. C. Bryan, Wilkesborouj'h, N. C, December 30, 18b0 : "I have not i)ai(l anything to defray the incidental expenses of the collector's office." Mecans Casstevens, Jonesville, N. C, December 30, I860: " I have contril)uted I)ut $1 to the object referred to." A. W. Austin, Wilkesb()ron<;h, N. C, December 30, 1880: "I have not contributed anything to defray the incidental expenses of the otliiccr of collector." S. L. Davis, Yadkinville, N. C, December 30, 1880: " I was nev^er called on for any fnnds for incidental expenses for the collector ' * *." S. K. Harkrader, Dobson, N. C, December 31, 18H0 : " I iiave never been called upon for anything and have not i)aid anything." J. C. Johnson, Hamptonville, N. C, December 31, ISHO : "I have contril)nted noth- ing, not being called on." Noah Barringer, Newton, N. C, December 31. 1880: "I have not contribnted any- thing to defray the incidental expenses of the ottice of the collector." L. A. Robinson, : " Have paid !|4.'2.5." Samuel C. Welch, East Bend, N. C, January 1, 1881: "I was not asked for any- thing, and did not contribute anything, to defray the incidental expenses of the office •of the collector." W. R. Trull, , January 1, 1881: "Have never paid or contributed anything for incidental expenses of the otifice of the collector." J. T. Mcintosh, Taylorsville, N. C, January 1, 1881 : "Have not contributed any- thing to defray the incidental expenses of the otifice of the collector." J. W. I'aden, Ai)ple Grove, N. C, January 1,1881: "I never contributed anything, nor neither was I called on to do so." T. J. Martin, Haysville, N. C, January 1, 1881: "No funds have been contributed by me to defray the incidental expenses of the otifice of collector." Enoch Rector, Marshall, N. C, January 1, 1881: " I did not know anything of that, having never been called to contribute such." .John F. Smitherman, East Bend, N. C, January 1, 1881: "I have not given any- thing." J. B. Somers, Hunting Creek, N. C, January 1, 1881 : " Have contributed nothing." E. Q. Houston, Mount Mourne, N. C, January 1, 1881: " Have contributed nothing to defray the incidental expenses of the collector's otifice." N. H. Farrington, Jonesville, N. C, Jauua,ry 1, 1881 : " I never contributed anything, and never was asked." M. H. Vestal, Jonesville, N. C, January 1, 1881; "I have contributed one dollar to defray the incidental expenses of the otifice of the collector." W. C. Prevett, Osboruville, N. C, January 1, 1881: "I have contributed $2.10 to defray the incidental expenses of the otifice of the collector." W. B. England, , January 1, 1881 : " Have paid $7.15." Milus M. Crumel, Cross Roads Church, N. C, Jauuary 1, 1881 : "I contributed to the office of the collector * * * about $3.r)0 to defray the incidental expenses of that office." W. F. Alexander, Roaring River, N. C, Jauuary 1, 1881 : "I contributed to defray the incidental expenses of the office of the sixth district of North Carolina, $1.80." D. M. Haithcox, Troutman's, N. C, .Tanuary 1, 1881: "I was not called on for any- thing and did not contribute anything." Leanders L. Green, Boone, N. C, January 2, 18S1 : "Have not contributed anything to defray the inciilental expenses of the collector." J. H. Harris, Salisbury, N. C, January 2, 18S1 : " Have notbeeu asked to contribute for the purpose mentioned, and I have contributed nothing." Wm. P. A. White, McCurdy, N. C, Jauuary 3, 1881 : " Have not paid anything for any purpose." H. P. Conley, Caldwell City, N. C, Ja)iuary 3, 1881: " Have not contributed any- thing to defray the incidental expenses of the office of the collector." J. Wagoner, Hamptonville, N. C, Jauuary 3, 18-!1 : "Have not contributed any- t'.iing, not being called on." R. W. Woodruff, Jonesville, N. C, Jauuary 3, 1881 : " I paid about $2.75 to defray the incidental expenses of the office of the collector." F. M. Adams, Mulberry, N. C, January 3, 1881 : "I paid into the sixth collector of North Carolina the sum of $7 for incidental expenses of &aid office." W. G. Boyle, Concord, N. C, January 3, 1881 : " Have contributed $4.15 to defray the incidental expenses of the offi(;e of the eollector." 378 COLLECTION OF INTERNAL REVENUE IN F. F. Hakoinb, Hamptonville, N. C, January 3, iHil : "Have contriljuted about $1.10 to defray the iucideutal expenses of the collector." J. W. Clarke, Shelby, N. C. : "I contributed to the office of the collector * * *- $il04, and various other amounts for the same purpose in this and adjoining counties. I wrote to you a few days ago, January 3, in rejily to yonrs * * * antl reported that I had paid to thecollect'>r * * * $104 for office expenses, which was a mistake. I paid that amount for campaign es]>enses. I have paid to date |'J.90 for office ex- penses." T. B. Haynes, Jonesville, N. C, January 3, 18:il : " Have never contributed anything to the collector." S. P. Parsons, of Gastonia, N. C, January 3, 1881: "I cannot specify the exact amount. I think about $8 or $10. It is now some time since I contributed anything, and cannot tell the time of my first, but the assessment was $1 per month." Emmett Johnson, Dellapilan, N. C, January 4, 1881 : " Have not contributed any- thing to pay the incidental expenses of collectors; neither have I been requested to pay anything." Jacob M. Privett, Trap Hill, N. C, January 4, 1881: "Have not contributed any- thing to defray the incidental expenses of the office of the sixth district of North Carolina ; neither have I been asked for anything." George Z. Poindexter, East Bend, N. C, January 4, 1881 : " Have paid nothing to the collector." D. P. Allgood, Cross-Roads Church, N. C, January 5, 1881 : "I contributed to the office of the collector * * * about $3.15 to defray incidental expenses of that office." Robert L. Bell, , January .5, 1881 : " Have never contributed anything to defray the incidental expenses of the office of the collector." H. M. Brooks, Jefferson, N. C, January 5, 1881 : "Have contributed nothing to de- fray the incidental expenses of the collector's office * * * that I can think of at the present." William Howard, Mountain Creek, N. C, January 5, 1881 : "Have not contributed anything to defray incidental expenses of the collector's office. I have not been called upon to contribute anything." Samuel H. Johnson, Zion, N. C, January 5, 1881 : " Have not contributed one cent — not being called on — for anything whatever." W. M. Johnson, Sowerwood, N. C, January 7, 1881 : " I did not contribute anything to defray the incidental expenses of the collector's office." S. P. I'asom, Gastonia, N. C, January 7, 1881 : "I find that I could not have con- tributed more than $7 or $8. I think about $7 is the nearest estimate that I can make." A. Wiles, Mulberry, N. C, January 7, 1881: "I have not contributed anything." Sumi>ter A. Hoover, Statesville, N. C, January 8, 1881 : "I have paid $1 to defray the incidental expenses of the office of the collector." G. W. Setzer, Newton, N. C, January 8, 1881 : "I have contribnted to the amount of $;') to thecollector's office * '* ^ fir incidental expenses of the office." Andrew J. Burcli, Aguone, N. C, January 8, 1881 : "Have never contributed any- thing, nor have I been asked or requc^sted to do so." F. P. Tucker, Forks Cliurch, N. C, January 10, 1881 : " Have nev(n' given anything for that i>urpose." R. R. Reid, Olin, N. C, January 10, 1881: "Have never been called on as yet to contribute to any such cause." F. Cahlwell, Dallas, N. C, January 10, 1881: "Have contributed $1 to defray the exjicnscs of the collector's office." JoH. Casswell, Morganton, N. C, January 10, 1881 : " I never contributed anything to defray tiie incidental exjiensos of tiuj collector's olficc^" A. G. Myres, New Hope, N. C, January 10, 1881: "I have never contributed any- thing to (h'fray tin- incidental expenses of the collector's office." Jno. A. Clouse, Sniilli Grove, N. C, January 10, 1881: "Have not paid or been asked for anylhing for incidental expenses of the office of the collector." .1. L. Sniilh, Me called upon for any money for that purpose.'' R. R.Lowe, Ohio, N. C, January 13, 1881 : "I have contributed .^1 to defray the in- cidental expenses of the office of the collector." T. S. Wood, , January 13, 1§81: "I never paid anything for incidental ex- penses. I paid for campaign ]>urposes." G. A. Barkley, Denver, N. C, January 15, 1881: "Have contributed $1.10 to thc^ sixth collection district of North Carolina, as incidental fees." S.S. Jennings, Mulberry, N. C, January 15, 1881 : " Have not contributed any thiiig to defray the incidental expenses of the collector's office." S. C. Anderson, Boon, N. C, .January 15, 1881 : "Have not contriliuted anything tO' defray incidental exi)ecse8 of the office of the sixth district of N^orth Carolina." Alex. W. Klutz, Monroe, N. C, January 17, 1881 : " Have not contributed anything to the incidental expenses account of Collector J. J. Mott's office." M.A.White, Statesville, N.C., January 17, 1881: "Would respectfully reply that I paid nothing." T. A. Kerley, East Bend, N. C, January 18, 1881: "Have not contributed anytliing^ to defray the incidentals of the collector's office." L. C. Johnson, Haniptonville, N. C, January 18, 1881 : " Will say my expenses in the collector's office have been nothing." Henry Hodge, Rutherfordton, N. C, January 18, 1881 : " Have never contributed any- thing." W. T. Bailey, Morganton, N. C, January 18,1881: "Have never contributed any- thing to defray the expenses of the collector's office of * * * , nor have not been asked for anything in that direction." T. H. Hampton, Black Mountain, N. C, January 20,1881: "Have never paid any- thing in the office of the collector to defray any incidental expenses of the office, and have never been called upon to do so." W. C. Daugla«s, Trap Hill, N. C, January 20, 1881 : " I never contrib-ited any. and L liave never been a-^ked to contribute any." J. Q. A. Bryan, Jeft'erson, N. C, January 20, 1881 : " Have not contributed anything, neither have I been called upon for any such contribution." W. G. C. Hendrix, Smith Grove, N. C, January 20, 1881 : "I contributed $2 to defra,^ the incidental expenses of the office of collector." G. W. Patterson, Concord, N. C, January 21, 1881 : " I contributed .f 1.35 to defray the incidental expenses of the office of the collector." Elijah Dyer, Maple Springs, N. C, January 29.18-^1: "Have not contributed a;iy money in tl e office of the collector.'' Treasury Di:rARTMENT, Offici-; of iNTF.nxAi^ Revenuiv Washingioih U- C., January 26, 1882. Sir : It has been reported to this office that officers and employes in the sixth dis- trict of North Carolina have not received from the coUectitr the money due them for their services. You will please state explicitly by return mail whether Collector Mott is indebted to you on account of any receipt which you have given to him by virtue of your ser.'- ices as an officer or employe of the government. This iu(fiiiry is not made upon the theory that this office believes Dr. Mott to have 380 COLLECTION OF INTERNAL REVENUE IN been derelict, but because his official conduct in this regard has, by ccrtaiu parties, been brought in question. Respectfully, GREEN B. RAUM, Commissioner. A. B. Rhyuo, Dallas, N. C, January 28, 1882 : "Dr. J. J. Mott -^ " * is not iu- iu|iily for my services as st«>rek(!eper and ganger as it became due, ever since I liavc been employed as such, and he is not duo nu; one cent on account of any I'eceipt <)i' anytliiug fls(! given him or any one else." (;. \V.('aMut given to him by virtue of my services- as an otticer or enii)loyt^ of the government." S. L. Tays, Statesville, N. C, January 2i, l8-*2: "I):-. .1. J. M..tt * ' * has- paid me promi)tly for every day's service rendered by me to the government."' F. C. Ferguson, Dallas, N. C, January 28, 1882: " Collector Mott is not indebted to me on account of any receipt or other obligation, but that I have received my pay regularly and promi)tly for all services rendered." J.B.Richards, Gastonia, N. C, January 28, 1»82 : "Dr. Mott, as collector, owes m& nothing in regard to services ; has always been very punctual." L. A. Robinson, Catawba, N. C, January 28, 1882 : " He is not indebted to me in any way, and that I have always received my checks promptly for services rendered." W. E. Lourance, Catawba, N. C, January 28, 1882: '■ 1 have been paid off regularly ; no claims back of any kind." J. H. Ramsay, Statesville, N. C, January 28, 1882: "I have always received mr pay in full for services rendered as an employ*? of the governnu'nt under him promjttly at the close of each and every month. Dr. Mott is not indebted to me on account of ' any receipt' or in any other way whatever." L. A. Brittain, Morganton, N. C, January 28, 1882: "Received my pay" regular as it came due, and all that was due me from J. J. Mott." S. P. Pasour, Stanley Creek, N. C, January 2S, 1882: "None of my dues have been withheld from me by Collector Mott. I have been promptly paid for my services in the revenue department, with the exception of the ten last days of June, 1881, whereof I was notitied that the funds appropriated for the year were exhausted." E. L. Smyre, Gastonia, N. C, January 28, 1882: " There is due me from the govern- ment $27, for nine days' work as storekeeper and ganger in the month of June, L881. This is all that is due me from the government in anyway whatever. Dr. J. J. Mott, collector, told us storekeei)ers and gangers that there had not been api)ropriatiou! made for that juirpose." W. L. Westnuu-eland, Statesville, N. C, January 28, 1882: "Collector J. J. Mott i» not indebted to me in any sum on account of any receipt that I have given him for service as an officer or employe of the government." T. Glenn, Statesville, N. C, January 2«, 1882: "Collector Mott is not indebted to me in any sum whatever on account of any receipt I have given him. I have received all money due me." H. W. Dean, Statesville, January 2*^, 1882: "I have promptly received my salary in full for each month's service rendered the government from J. J. ]Mott, * * * and he now owes me nothing whatever in either his official or personal capacity." A. C. Shaye, Statesville, N. C, January 28, 1882: "I have received every cent due me from Dr. J. J. Mott, ofticially or otherwise.". J.Frank Davis, Statesville, January 28, 1882: "I have prom]»tly received my salary in full for each month's service rendcied the government from .1. J. Mott, « * * and he now owes me nothing whatever in either his official or personal capacity." P. L. Rose, Statesville. N. C, January 28, 1882 : " I have received my salary lu'omptly at the end of each mouth." C. T. Colyer, Statesville, January 28, 1882: "I have always received my monthly check in full from the cashier and disbursing deputy collector up to the present time,, and that he is not indebted to me for such services except lor the current month due first February next.'' James G. Hood, Statesville, January 28, 1882: "Dr. Mott is due me nothing for services rendered as deputy collector under him, and that I have always receive my full wages promptly at the end of every month as an officer of the government." George F. Brown, Statesville, N. C, January 28, 1882: "He is not iiulebted to me in any sum on said account, all moneys due me having been promptly jiaid at the close of each month." R. R. Ray, Charlotte, January 28, 1872: " Collector Mott has always settled^with me promptly, antl owes me nothing." __ ' W. H. Hobson, Jerusalem, January 28, 1882: "Have always received my salary promptly and regularly, and no part of it has been retained at any time for any purpose whatever." W. H. Stockton, Statesville, N. C, January 28, 1882: "I have received every~ceut. due me for mv services fiom Collector Mott." 382 COLLECTION OF INTERNAL REVENUE IN "W. Fraley, Williamsburg, N. C, Jauuaiy 28, 1882 : '' Dr. Mottdoes lot owe me aiij'- tliiiig." A. M. Xail, Mocksville, N. C, January 28, 1882 : " Dr. Mott is due me nothing and Las always been very prompt in my pay tlirougli him, but I have an account in the clerk's office of Mr. H. C. Cowles, for guarding a tobacco factory seized by an agent of the revenue, that you would confer a great favor by ordering me paid. The account is ior28 days during last June." T. L. Shields, Monroe, N. C, January 28, 1882 : " I have received my compensation promptly up to the 1st of January, 1882, except for a few days in the latter part of June, 1881, when the appropriation for jiay of storekeepers and gangers run short for the fiscal year ending June 30, 1881. T. A. Meroney, Mocksville, N. C, January 28, 1882 : " Dr. Mott, collector sixth dis- trict, has paid me for all services rendered to the United States as storekeeper and ganger, and at this time there is one month's services about due, but my pay account has not yet been sent in." Hugh A. Pence, Newton, N. C, January 23, 1882: " Dr. Mott has paid me every dollar dne me for my services in the revenue department." P. W. Jenkins, Dallas, Gaston County, N. C, TanuarySS, 1882: " I have always re- ceived my pay to the last cent, and i)romptly, for all my services." K. .T. Kennedy, King's Mountain, N. C, January 28, 1882: "Collector Mott has al" •ways paid me every cent dne me for services due me. * * * That he does not owe Tue anything, and he has never kept back one cent of my wages at any time." G. W. Patterson, Concord, N. C, January 28, 1882 : '* Dr. Mott is dne me $27, for which he has my receipt on account for nine days' services the last of last June ; he informed me that the appropriation for the storekeepers and gangers was so nearly exhausted that the department could not pay the money until the government made further ap- propriations. With this exception Dr. Mott has paid me promptly all the money due me for my services, and he has paid me in full for all the receipts I have given him." B. V. Beal, Lincoluton, N. C, January 29, 1882: "I have always received my full pay for all services that is due me from him." L. C. Johnson, Hamptonville, N. C, ^January 30, 1882: "Dr. J. J. Mott, collector, * * * is not indebted to me for any receipt which I have given him." T. A. Kerley, Taylorsville, N. C, January 30, 1882: "Whether or not Collector Mott Is iii(lel)ted to me on account of any receipt he may have received from me? I will ba.\ lie is not." H. Y. Mott, Mount Monrue, N. C, January 30, 1882: "Collector Mott is not indebted iii|itly paid me all dues and demands for st-rvice rendered in my official capacity." .J. N. Selzer, , January :',(), 1882: "I have received promptly from Dr. Mott ♦•vcr.v dollar due nie for services as an otilicer of the gy me » » « nor (Ui any receipt that 1 have given lo liim." A. ('. Mond.iv, Tooper's, N. ('., January 30, )Hrt2: "I have received ;ill money duo uie." THE SIXTH DISTRICT OF NORTH CAROLINA. 383 S. M. Morris, Dallas, Oaston County, North Carolina, January 30, 1882: "I havo received from tbo collector (Mott) * * * all money due me for storekeeper and ganger, in full to date." T. H. McNeely, Morganton, N. C, January :?0, 1882: "Collector Mott has always paid me for services * * promptly * * * Is not indebted to me on account of any receipt given him." R. Powell, Morgantou, N. C , January 30, 1882: "Dr. Mott has always paid me up promptly. He owes me nothing." Isaac A. Pearson, Catawba, N. C, January 30, 1882: "Dr. Mott is not indebted to me for any services rendered by me to the government." G. W. McLanghen, Dallas, N. C, January 30, 1882: "Dr. Mott does not owe me any- thing for my services since I have been in the employ of the government, or on account of any receipt or any other obligation." D. C. Pearson, Morgantou, N. C, January 30, 1882: " He is due me nothing on such account, and never was. I was always paid promptly and in full for my services as au officer." .1. T. Sniitherman, East Bend, N. C, .January 30, 1882: " Collector ,T. J. Mott is not due me anything for services rendered." J. M. Turner, , January 30, 1882: " I havo received everything that is due me as an officer or employe of the government, except for the last ten days of June, 1881, amounting to |27, which, I was officially informed, that there was uo appropriation." Mr. Kimbroiight, Smith Grove, N. C, January 30, 1882: "Dr. Mott is due me noth- ing, but on the contrary has paid me promptly at the expiration of each month." EH Best, New Stirling, N. il'., January 30, 1882: "Collector J. J. Mott is in no way indebted to me for any services * » * jjor for anything that I have given him for my position that I now hold." A. A. Hines, Sweet Home, N. C , January 30, 1832: "Dr. Mott * * * is not in- debted to me on any account whatever." J. G. Douglass, Mount Mourue, N. C, January 30, 1882: "Dr. Mott is not indebted to me on accouut of any receipt or note given by me." W. F. Holland, King's Mountain, N. C, Jauuary 30, 1882: " Dr. J. J. Mott owes um jiothing, with the exception of nine days in June, 1881, for which there was no appro- priation." Wiley S. McKee, Garibaldi, N. C, January 30, 1882: "Collector Mott is not indebted to me on account of any receipt which I have given him * * * except nine days' service rendered * * * for the month of June, 1881." L. M. Davis, York College, N. C, January 30, 1882 : " I have uever given any receipt to Collector Mott for any of my wages as an oflQcer of the government without having received the full amount." W. B Mott, Mount Mourne, N. C, January 30, 1882: " He has never received from me any such receipt, and has always paid me the last dollar due me." C. A. Wilfoug, Catawba, N. C, January 30, 1882: " Collector Mott is not indebted to me in any way, and I have always received my money promptly." N. B. England, , January 30, 1882 : " I have received promptly from Dr. Mott every dollar due me for services as an officer of the government." A. J. Jenkins, Dallas, N. C, January 30, 1882: "Dr. Mott, collector, has paid ma every dollar of my wages ; * * * is not indebted to me on accou)it of any receipt whatever." M. M. Teagne, Marion, N. C, January 30, 1882: "My accounts have all been paid promptly and to a cent, except nine days in Jam', 1881. Two accounts were made out for that month and but one has been paid, but a circular letter ex])laining why th» balance could not be paid then was received." E. W. Pntnam, Mount Mourne, N. C, January 30, 1882: "In reply to your inquiry as to whether Collector Mott was indebted to me on account of any receipt which I have given him, ► * * I would answer no." Joseph Carswell, Morgantou, Jauuary 30, 1882: "I have been paid very promptly by Collector Mott for all services rendered by me." R. C. Bowles, , January 30, 1882 : " J. J. Mott has paid me all due me for my services." Richard Williams, Morgantou, N. C, January 30, 1882 : " I have received my pay for all the service that has been allowed me, and no part thereof has been retained by said Collector Mott." P. J. Rhyne, Dallas, N. C, January 30, 1882. "Dr. J. J. Mott * * * , I'ae paid nie for my services as United States storekeeper anil ganger to Jan. 1, 1882." 384 COLLECTION OF INTERNAL REVENUE IN I. O. Hart, Lewisville, N. C, January 30, 1882: " Ct)llector Mott lias always paitl me pnuctnally lor all services rendered. " 8. Angle, Eagle Mills, N. C, January :iO, 1882 : " Dr. Mott is not indebted to me one dollar on account of any r< ceipt I have given him. He has ahvayspaid me promptly."" W. R. Rankin, Garibaldi, N. C, January 30, 1882: "J. J Mott is not indebted to me on any account or any recei])t I have given him •* "" ** except nine days'' service rendered in the month of June, 1881, which I was informed, I believe, through your office, would not be paid until there was an axtpropriation made for the same.V J. F. Aydlotte, Biitt'alo Paper Mill, N. C, January 30, 1882; "Dr. Mott is not in- debted to uie by any receipt which I have given him as an officer or employ^ of the government." F. G. Thorpe, Eagle Mill, January 30, 1881 : " J. J. Mott, collector, has paid me in fall for all the receipts I have signed." L.P.Henderson, Morganton, N. C, January, 1882: " Dr. Mott, collector, * * ^ has been very prompt with me." James R. Lewis, Dallas, N. C, January 30, 1882 : " Dr. J. J. Mott, collector, * * - is not indebted to me anything on account of any receipt given for service rendered." J. W. C. Long, Catawba, N. C, January 30, 1882 : " Collector Mott is not indebted to me in any way, and I have always received my money promptly." R. G. Patterson, East Bend, N. C, January 30, 1882: " Collector Mott is not indebted to me in any sum or account of any receipt that I have given him." Geo. AV. Williams, Asheville, N. C, January 30, 1882 : " I have received every dollar that is due me." John K. Potts, Htatesville, N. C, January 30, 1882: "I received my pay monthly while under regular assignment as deputy collector in his office; also further that he. Dr. Mott, never required of me a receipt for anything more than was due him by virtue of his office." M.W. Jewett, , January 30, 1882 : "Dr. J. J. Mott * * * has settled with me in full for all services rendered to date." Jere Smith, Taylorsville, N. C, January 30, 1882: "In answer to an inquiry from your office of the 26th instant, asking me to state explicitly whether Dr. Mott is in- debted to me for services rendered as an officer or employe of the government, I an- swer he is not." Thomas J. Richman, Henderson ville, N. C, January .30, 1882: "Dr. Mott has alway* very promptly forwarded me all my drafts as they were drawn, and has never had my receipt except for same when they w^ere forwarded to me." W.R. Trull, , January 30, 1882 : " Dr. J. J. Mott does uot owe me anything and has always sent me my pay * ' * as soon as it was due." J. T. Goodman, Amity Hill, N. C, January 30, 1882 : " Collector Mott is not indebted to me. Has been very i)rompt in his jjayments to me." J. P. Murphy, Statesville, N. C, January 30, 1882 : " Dr. Mott is not indebted to me for official duties." 8. C. Welch, East Bend, N. C, January 30, 1882; "I have received all of my pay ' * * up to January I, 1882, except for nine days, the last of June." John M. Ilanna, Gastonia, N. C, January 30, 1882: "There is nothing due me for services rendered * * * only for the last nine days of June, 1881, which 1 receipted Collector Mott for, and I learn there was no appropriation for services rendered at that time." W. A.Johnson, Hani])tonville, \. ('., January 30, 1882 : " Dr. Mott is not indebted to me on anv account of any receipt whatever." J. >L Arn'istrong, (;aril)aidi, N. C, January 30, 1882 : " Collector Mott does not hold any receijjt against me which is not settled. I have no claims against him whatever."' S. R. (Jndger, Morganton, N. C, January 31, 1882: "Dr. Mott is uot indebted to- me on account of any receipt which 1 have given him." I). L. Lr)wry, County Line, N. C, .lanuary 31, 1>^82: " Collector Mott is not indebted to me for any seivic-es i(5ndei'aid otV regularly up to this date." A. D. (ientry, Haniittonville, N. C, January 31, 1882: "Dr. J. J. Mott is not in- delited to me, » " » for any service that I hav<> rcMidered * * " nor for any re- ceipt that I have signed, but has always jiaid me up promptly." I. N. Hays. Miller's Creek, N.C., January 31, IHri-J : "Dr. J. J. Mott has paid me promptly for my services as storekeeper and gjinger." .1. 15. Simontitn, \Vilkesl>oro', N. C, .lanuary 31, 18H2: " Collector Mott lias always paid me for my Herviction of a small receipt of $27 for nine days' work in June, 1881, which lias not come into his haud,«." W. C. Myers, Osbornville, N. C, January 31, 1882: "I have received my salary promptly from Dr. J. J. Mott ever since I have been in the service, except for the nine last days of June, 1881." H. H. Martin, Dallas, N. C, January 31, 1882: "I can say positivcdy that I have received evei-y cent of money due me by virtue of my services as storekeeper and ganger of this district." L. Moorow, Statesville, N. C, January 31, 1882: "Collector Mott is not indebted to me on account of any receipt given him by me. * * * Having received throuo-h Collector Mott, and receipted for all money due me for services performed by me up to December 31, 1881, with the exception of a small receipt of $36, the amount due on the last nine days of my June account for 1881." G. W. Sharpe, Statesville, N. C, January 31, 1882: "Collector Mott is not indebted to me on account of any receipt given him by me. » * * Having received throu"h Collector Mott, and receipted for all money due me for services performed as an otHcer or employe of the government up to December 31, 1881, with the exception, however of a small receipt of $36, the amount due me on the nine last days of my June ac- count for 1881." C. A.Coleman, Osbornville, N. C, January 31,1882: "I have received my salary- promi)tly from Dr. Mott ever since I have been employed." J. L. Hewitt, Newton, N. C, January 31, 1882: "All claims due me from Dr. Mott's office as a storekeeper and gauger has been duly received from him and punctually at that." L. N. Dulin, Smith Grove, N. C, January 31, 1882 : " I have received all my wa"-es from Dr. Mott for services rendered the government as storekeeper and ganger* he is not indebted to me for any receipt given him in that capacity." A. I). Cooper, A8heville,N. C, January 31, 1882: "Must say that J. J. Mott * * # is not indebted to me on account of any receipts I have given by virtue of my ser- vices as an officer. I have always received my pay promptly." W. W. Hampton, Eagle Mills, N. C, January 31, 1882 : " Collector Mott is not due me anything on account of any receipt that I have given him. He has always paid me promptly." E. H. Davis, Columbus, N. C, January 31, 1882: "Dr. Mott is not indebted to me on account of any receipt given him for services rendered as an ofticer of the govern- ment." David A. Ramsay, Salishury, N. C, January 31,1882: "Dr. J. J. Mott » * * has always promptly remitted and paid to me all money due me for services rendered as internal-revenue storekeeper and gauger, and that Dr. Mott is not dne me one cent for services rendered." M. A. Wilkinson, Newton, N. C, January 31, 1882 : " I have received all money due me for services rendered but $27 for the last nine days in June, 1881." L. A. Peebles, Advance, N. C. January 31, 1882: "Collector Mott has paid me for all of my service, with the exception of $27, for June, 1881." O. M. Barkly, Statesville, N. C, January 31, 1882: "I have always received my pay promptly, and that the collector does not owe anything at all." W. H. Brown, Wilkesborongh, , January 31, 1882 : "Collector J. J. Mott * * » does not owe me, by receipt or otherwise, one cent of wages earned by me as an officer of the government in said district." J. T. Peden, Wilkesborongh, , January 31, 1882: "He is not indebted to me for any receipt for services as an officer or otherwise." R. .J. Williams, Rutherfordton, , January 31, 1882: "He does not owe me a farthing, but promptly pays every cent that the government allows me for services S. Mis. 116^^ — 25 386 COLLECTION OF INTERNAL REVENUE IN rendered; the only instance wherein I have signed any receipt and not received pay was for eight days' services as storekeeper and ganger last June, from tlie 22d to the liOth day of Jnne, 18ril." John B. Eaves, Rutherfordton. N. C, January 31, 1882: "The collector, Dr. Mott, * * * has paid me promptly on all receii)ts up to date. I have an account liled. for June, 1881, from the 21sl. to the 3(Jtli, inclusive, not yet paid." Peter A. Little, Catawba, N. C, January 30, 1882: "I can, without any hesitancy, say that Dr. J. J. Mott has never kept out of my services auy funds for any purpose," J. W. Ramsay, Marshall, N. C, January 31, 1882: "My accounts are in for Novem- ber and December, for wliich I have not yet received the pay, but I feel no uneasiness about getting."' J. R. Henderson, ^Yilkesborough, N. C, January 31, 1882: "Dr. Mott is in no way in- debted to me for my services to the government, and no receipt has ever been given him by me except for which I have received full value." J. T. Hedrick, TIedrick, N. C, January 31, 1882: "Dr. Mott is not indebted to me for any services rendered the government. He has always paid me promptly every mouth." M. L. Hoopei-, Williamsburg, N. C, January 31, 1882: "The collector has settled with me in full for all services rendered as storekeeper and ganger in his district." E. Q. Houston, Mount Monrne, N. C, January 31, 1882: "Collector Mott is not in- debted to me for any receipt by virtue of my services as an ofticer or employ6 of the government." J. L. Rhyne, Dallas, N. C, : "I have received full payment for all receipts given Di'. J. J. Mott, collector, for my services." John M. Hauua, , : "Collector Mott is not due me anything whatever." L. A. Mason, Dallas, N. C, : "Dr. Mott is not due me anything for services as employe in the revenue service." S. D. Brown, Hamptonville, N. C, February, 1882 : " I have received all money re- ceipted for from Dr. J. J. Mott, except for December, 1^81, and January, 1882. As yet I have not been qualified on my pay accounts for those mouths, and think I will get the money when I go to his office and am qualified. Jacob Blevins, Walnut Hill, N. C, : " Collector Mott is not indebted to me on any account whatever; he has always paid me promptly and have given him no receipt without having first received value in full. S. Huft'raan, Morganton, N. C, February 1, 1882: "Dr. Mott, collector, is not in- debted to me on account of any receipt I have given whatever." A. J. Absher, Mulberry, N. C, February 1, 1882: "There is nine dollars due me for the three last days of June, and the balance of my checks came up promptly." J. S. Jones, Panther Creek, N. C, February 1, 1882: "Dr. J. J. Mott has always paid me promptly for all my services rendered for the government." W. C. Shores, Jonesville, N. C. February 1. 1882: "Dr. J. J. Mott » * * is not in arrears with me nor never has been since I have been employed by the government." (i. AV. Crawford, Marion, N. C, February 1, 1882: "I have received * * * all the pay due me lor services to the present date, except $27 due as a balance on pa,y for tlic iiioiitb of June, 1881, the delay of which payment is understood to be no fault of Ccrry, N. C., February 3, 1KM2. "I have never receipted Dr. J. J. Molt lor none of my pay that was due me from his oflice." .hiiiitsR. Davis, Statesville, F a mi Hinting to .'JHiIJ, making no charge for self and horse ; this was in '77." THE SIXTH DISTRICT OF NORTH CAROLINA. 389 J. C. Snllivau, Yadkiiivillo, N. C, February 4, 18S2: "Collector Mott ia uot due mo anything on account of any receipt, aiul lias alwayw paid nie promptly." R. R. Reid, Olin, N. C, February 4, IH-^i : " Dr. Mott has 8igued and delivered my checks for each month's work regularly." M. W. Vestal, Chestnut Ridge, N. C, February 4, 1882: "Dr. Mott has always been prompt to pay over all money due me." R. W. Woodrutt', Jouesville, N. C, February 4, 18r52 : "Dr. J. J. Mott has always been prompt to pay over all money due mo." 13. O. Morris, Fork Church, N. C, February 4, 1882: "Dr. Mott has always paid mc promptly all the money due." H. E. Shore, Shore, N. C, February 4, 18c:2: "He is not (indebted to me). My accounts * * * have all been pr()mi)tly remitted." W. P. Parks, Williamsburg, N. C, February 4, 1882: "Dr. Mott has always signed and sent me mj^ checks for each month's work regularly." A. M. Salmons, Zion, N. C, February 4, 1882: "Dr. Mott is due mo nothing as storekeeper and ganger." S. A. Hoover, Statesville, N. C, February 4, 1882: "Dr. .1. .1. Mott, collector, is not indebted to me on account of any receipt which I have given to him » • » ^.^. cept for nine days for the month of June, 1881." D.M. Haithcox, February 4, 1882: "Have received of Dr. Mott all money due me for my service, except for the last nine days in June, 1881, which I suppose I will get as soon as Congress provides it." .7. F. Green, Easttield, N. C, February 4, 1882 : "Dr. J. J. Mott * • * has paid promptly to .January, 1882." R. K. Edwards, Roaring River. N. C, F'ebruary 4, 1882: "Dr. J. J. Mott has never retained any part of my pay, or, so far as I know, attempted to retain any, nor never has iutimated such a thing to me." A. Huffman, Pearson, N. C, February 4, 1882: " (Collector Mott) he is not indebted to me; he has paid me for all my services." R.R.Lowe, Olin, N. C, February 4, 1882: "Dr. J. J. Mott * * * has always been very prompt to forward all the checks due me for services." H. M. Brooks, Glade Creek, N. C, February .5, 1882: "Dr. J. J. Mott * * » is due me nothing for work done. * * * jje hiis paid me promptly." M. Cassterens, Jouesville, N. C, February 5, 1882: "J. J. Mott * * * is uot in- debted to me for any receipts signed by me, nor never has been since I have been em- ployed by the government." J. F. Mnudy, Denver, N. C, February 6, 1882 : " Have received from collector pay- ment in full for all service rendered by me." G. A. Barkley, Denver, N. C, February 6, 1882 : " Have received from Dr. Mott pay- ment in full for all services rendered by mo * * * with the exception of nine days during the month of June, 1881." N. H. Farmington, February 6, 1882: "Dr. J.J. Mott * » * is not duo (me) any- tliiug; has paid me for my services." J. M. Riggs, Statesville, N. C, February 6, 1882: "Collector J. J. Mott has never failed to pay me promptly.'' A. C.Bryan, Trap Hill, N. C, February 6, 1882: "Dr. J. J. Mott * * * has promptly paid me in full * * * for my services as an officer under his employ- ment." A. Higgius, Dysortville, N. C, February 6, 1882: "Dr. Mott is not indebted to me one farthing, nor has it ever been intimated by the collector or his subordiuates that I was due him anything on account of my services." G. M. Sitzer, Salisbury, N. C, February 6, 1882: "Dr. Mott is not indebted to me oue cent on any account." F. Caldwell, Sherrill's Ford, N. C, February 6, 1882: "Have received from Dr. Mott payment in full for all services rendered by me." A. F. Pack, Fork Church, N. C, February 6, 1882: " Dr. Mott has paid me promptly every cent ever due me." M. Garwood, Fork Church, N. C, February 6, 1882: "Dr. Mott has always been punctual to jtay me up, except one check, which he kept, he said, for election pur- poses." Lawson E. Davis, Lewis Fork, N. C, February 6, 1882: " Dr. Mott * _ * * is not due anytliing to me for my services * * * directly, indirectly, or in any other way, but has forwarded the full amount for my services from time to time in due season." 300 COLLECTION OF INTERNAL REVENUE IN J. W. Gray, Statesville, N. C, February 6, 1882: "J. J. Mott, collector, has paid mc all that was due me for services rendered to the government in my official capacity as an officer." J. P. Stacy, Morganton, N. C, Felirnary fi, 1882: "Have received my compensa" tion regularly, and that Dr. Mott owes me nothing, only for live days' work in June, 1881." J. Y. Mclntire, Sandy Plains, N. C, February 6, 1882: "Dr. J. J. Mott * * * is not indebted to me on account of any receipt given him by me for services rendered the government, except the one sent in for the last month, which 1 have no doubt ■will meet with prompt attention." L. AV. Sabastain, Milberry, N. C, February 6, 1882: " (Dr. Mott) he is not indebted to me for any receipts for services rendered to date." H. M. Rhyme, Dallas, N. C, February 6,1882: "Have received my pay regularly every mouth since I liave been iu the service." AVm. C. Douglass, Trap Hill, N. C. February 6, 1882 : "J. J. Mott, collector, is not in- debted to me any ; he has paid me promptly." L. L. Green, Boone, N. C. , February 6, 1882 : " Dr. Mott has never retained any part of my wages, and that he is not due me anything on account of any receipt given him." W. F. Martin. Hayesville, N. C, February .6, 1882 : " Dr. J. J. Mott has paid me all that was due me to the 26th of January, 1882." J. L. Ladd, Clingman,N. C, February 6, 1882: " (Collector Mott) he isiiot due me any- thing on account of any receipt that I have given him." * W. C. G. Hendrix, Smith Grove, N. C, February 6,1882: "Have received promptly from J. J. Mott * * * niy pay for services rendered * * * excejjt for a portion of one month for -which the money appropriated was iusufficieut ; * * » time re- ferred to was May or June, 1881." A.G.Myers, Statesville, N.C., February 7, 1882: "(Dr. Mott) * * * has paid me every dollar that the government was due according as the law directs." "W. F. Hoots, Yankluville,N. C, February 7, 1882: "Dr. Mott * * * has paid me for all services rendered by me to the government." J. D. Somers, Statesville, N. C, February 7, 1882: "Dr. Mott has paid me for each and every day's work according as the law directs." S. S. Bell, Hunting Creek, February 7,1882: "He has been very i^rompt in paying me." T. Templeton, Jennings' Mills, February 7, 1882: "Dr. J. J. Mott is not indebted to me on account of any receipts which I have given him as a U. S. officer." "\Vm. M. Moore, Bnrusville, N. C, February 8, 1882: "Have received all the checks as they were issued at Washiugton ; have received every cent receipted for by me ; have paid no charge or discount; neither has any been asked for." J. Q. A. Bryan, Trap Hill, N. C, February 8, 1882 : " Have always been paid punctu- ally, and in full." A. D. Moore, Statesville, N. C, February 8, 1882: "(Dr. Mott) he has not taken one cent of my wages." E. Staley, Dellaplane, N. C, February 8, 1882 : " I got all my checks from the office as tliey came due;" I give Dr. Mott no receijits in any way." S. P. Smith, Hunting Creek, N. C, February 8, 1882: "My accounts have always been paid promptly by Dr. J. J. Mott." J. L. Wliite, , Februarys, 1882: "Collector Mott is not indebted to me for any work I have done. I have received full value for all the work I have done." L. S. Bcnbow, Gn^enboro, N. C, February 8, 1882: "Dr. Mott is not indebted to mo on account of anj' receipt given him as an officer or employe^." R. J. Hennessa, Morganton,. N. C, F(d)ruary 8, 1882: "Have I)cen promi)tly paid by Collector Mott for all my services, except a few days of June, 1881." O. B. Hol(oml)e, [Jtth- (,'reck, N. C, February 8, 18H2: " I claim that Collector Mott owes me ninety-six dollars for scirviccs rendered at the distilling warehouse of James Hensley, No. 1711, in sixtli (lisfrict. North (;arolina, iu tlu^ month of Fel)ruary, 1881. Tlir distiller did not operate liut one or two days iu that month, hut 1 was kept there oil duty during the whole month J>y order of the depiil.v ('(dleetor in cliargi^ to wit, W. K. 'i'riill. At the distance! oC !« miles from my home and from all other employment." A. P. Coldiron, Jellerson, N. ('., I'eliniary t), 1882: " Dr. ■). J. Mott has paid me up promptly so far." .1. W. I'edeii, CiM l.iiiiirl (;;ip, N. ('., I'el)iiiary '.), 1HH2: "Dr. Molt never retained any money due me tor iiiv sei \ ices, iieiilier hiive I ever given him a receipt, and I never hav(! been called on (or a cenl since I liiive, been in the revenue." THE SIXTH DISTRICT OF NORTH CAROLINA. 391 H. L. Howell, Mnrpliy, N. C, February 10, 1882: "Dr. J. J. Mott i^uot indebted to me by any receipt wliicli I have given him by virtue of my office. I gave him my check for .July, lri80, for campaign i)nri)oses, and my A])ril c^heck for the year 1881: ho ia holding it for J. M. Taylor's deficiency. He said I had been reiiorted to his office that I was the cause of deficiency, and said he was going to hold it until the matter was investigated, and I have asked him for an investigation and lias not l>i-en one yet. I have not received my Decemlier check for 1H81. My January check, 1882, has uot had time to reach my office yet." Jonathan Wagoner, , February 10, 1882: "The nine last days of June, 1881, is all the receipts that I have not got paid for up to January, 1hh>." P. A. Lomax, P:ikin, N. C, February 11, 1882: "Collector Mott is not imlebted to me on account of any receipt which I have given him * » " except for service rendered from 21st to 30th of June, 1881, inclusive." A. Magberry, York, N. C, February 11, 1882: "Have received my wages in full- * * * I have no receipt against Collector Mott." J. B. Shelton, Denver, N. C, February 11, 1882; "Have received in full from Dr. J. J. Mott all the money due me for services as revenue officer." A. B. Gillespie, Charlotte, N. C, February 12, 1882: "Collector Mott has always settled with me promptly." J. "VV. Williams, Statesville, N. C, February 13, 1882: "He always pays me up promptly." W. B. March, Advance, N. C, February 14, 1882: "Dr. J. J. Mott * * * owes me nothing whatever foi" service. I have always been promptly paid in full." L. P. Ward, County Line, N. C, February 14, 1882: "Dr. Mott does not owe me any money on account of any receipt given him for services rendered, to the gov- ernment." A. J. Burch, -, February 1.5, 1882: "Dr. Mott has at no tune, nor in any way, withheld or retained any part of my salary as storekeeper and ganger. E. Dyer, Reddies River, N. C , February 15, 1882: "Dr. Mott has settled all the claims according to my re(iuisition for services. I have not receipted Dr. Mott for any moneys due me as an official." A. Bandy, Clinesville, N. C, February IG, 1882: "He is indel)ted to me for store- keeper and gauger nine days in the mouth of June, 1881, at Jji3 per day, !|29.00." W. L. Webster, Nattla, N. C, February 17, 1882: " Dr. Mott or some one else owes me $27 for the month of June, 1881. I was paid up to the 21st, and there is nine days' services in the month of June that I have uot received." T. Long, Huntsville, N. C, February 21, 1882: "Dr. Mott is not indebted to me." M. B. Crisp, Brasstown, N. C, February 23, 1882: "I do hereby certify (that) Col- lector Mott has paid me all that was due me for service as storekeeper and gauger in the sixlh collection dist., N. C, up to the 18th of January, 1882." F. M. Adams, Hay Meadow, N. C, February 28, 1882: "Dr. Mott has paid me all that is due me for services so far as I have receipted." J. M. Dickey, Hot House, N. C, March 2, 1882: " Dr. J. J. Mott has paid me all that I have receipted him for." P. F. Langenour, Baltimore, Md., March 2, 1882 : "My salary * * * * has always been paid promptly by Collector Mott, generally by the 20th of the month succeeding the one for which it was due, with the following exceptions : the .Tune salary for 1880 was not paid till in the spring of 1881, the last nine davs of June, 1881, are yet unpaid, both cases resulting from lack of sutficient approjjriations, as you well know." A. Groner, Dallas, N. C, March 18, 1882 : "He owes me nothing on receipts signed by me as an officer or employe of the government." W. J. Patterson, Morganton, N. C, March 18, 1882: "I have received my compen- sation regular, and Dr. Mott owes me nothing." N. B. Hampton, Columbus, N. C, March 18,1882: "I have received all my receipts fi'om Dr. J. J. Mott, collector, except a portion of last June, and that was caused by the appropriation not b^ing large enough to pay United States storekeepers and gangers lor that month, and that only amounted to about seven days." C. T. Hernan, Taylorsville, N. C, March 20, 1882 : "Collector Mott is indebted to me on account of my receipt which I gave him for the remaining nine days of June, from the 20th to the 3()th ; when the appropriation is made I will get it; but no other is ho indebted to me for." F. W. Sharpe, Sweet Home, N. C, March 20, 1882: "Dr. Mott is not indebted to me ou accouwt of services rendered the government, or any account whatever." 392 COLLI^'TION OF INTERNAL REVENUE IN R. J. Williams, Rutherford ton, N. C, March 20, 1882: " He does not owe anything to me." A.P.Murdock,Statesville,N.C., March 20,1882: "Collector Mott has always paid me promptly for all services, except a small I)alance for June, 1881, which he did not have in his hands, but will so soon as he gets it." J. B.Howell, State8ville,N.C., March 21, 1882 : "J. J. Mott * * * is not indebted in any measure to me for services rendered." John A. Keener, Poor's Ford, N. C, March 22, 1882: " My letter dated February 1 to you, in answer to yours * * * , I desire to state that I ought to liave said that the check for April, 1880, amount $100, was used by Dr. Mott for the campaign, and that was by my order, and be, Dr. J. J. Mott, now holds an order for the same. I ask that this be substituted for my letter. It is .duo the collector that it should be done. At the time I wrote the letter I had no idea that my letter would be construed as I understand that it has — that the collector used the check without my consent." J. S. Call, Wilkesborough,N.C., March 23,1882: "He is not indebted to me; I have been paid my dues up to the 1st of March, 1882, except the last nine days of June, 1881." F. P. Axley, Murphy, N. C, March 23, 1882: "Dr. J. J. Mott, collector of the sixth district of North Carolina, is not indebted to me on account of any receii)t which I have given him by virtue of my service as an official or employed of the government." J. S. Hewitt, Newton, N. C, March 23, 1882 : " Dr. J. J. Mott has paid all claims that I receipted." J. M. Privett, Trap Hill, N. C, March 23, 1882: "Dr. Mott has paid me up every- thing he is due me." Henry A. Moss, Marble, N. C, March 24, 1882 : " Dr. J. J. Mott is not due me any- thing ; have been paid promptly * » * for all services done." C. I. Smith, Wilkesborongh, N. C, March 25, 1882 : " Dr. Mott is not indebted to me by any receipt given to him." D. M. Pnett, , March 2.5, 1882: "J. J. Mott, collector, * » * paid me every cent that was due and that 1 receipted for." Samuel H. Johnson, Zioi),N. C, March 25,1882: "Dr. Mott is not indebted to me for any services." N. H. Farrington, , March 25, 1882 : "Dr. J. J. Mott » * * has paid me for all my services." J. L. Ladd, New Castle, N. C, March 25, 1882: " Elijah Ladd, U. S. ganger, is dead, but we can safely say that Collector Mott paid him all dues promptly." Giles Hntchins, Conrads, N. C, March 25, 1882 : (Dr. J. J. Mott) " ho owes me noth- ing; has paid me everything due me from the government." A. "Wiles, Mulberry, N. C, March 26, 1882 : (Dr. Mott) " he is not indebted to mo for any such receipt or otherwise. Have received my dues from the government for all receipts, save and except ten days of last June, which I presume has not been paid.'' Lee W. Williams, Rutherrordton,N.C., March 28, 1882: "Dr. Mott is not indebted to me on account of service as an employe of the government." James C. Setzer, , March 28, 1882: " I have received my salary regularly and promptly each month." R. A. Marshall, Statesville, N. C, April 3, 1882 : " Dr. J. J. Mott * * * is not in- debted to me on any account." H. Hayes, Wilkesborough, N. C, April 7, 1882 : " i;)r. J. J. Mott has paid nu^ promptly for all my services in the revenue department." Alexander W. Bell, New Castle, N. C, April 8, 1882 : "I have received all money due me from tin! collector." T. F. Holcoml), Hampton ville, N. C, Ai)ril H, 1882: "Dr. Motfc has paid me for every month that I have charg(!il the government for services as storekeepi^r and ganger, cxc(!pt (he j)ay du(» me for the month of August, IHSO, which was |H4. I had some time ]irc\i()ns icccivi'd a letter froiu the collector, asking uu^ to conti'ibute for cain- j»aigii purjiosi-H; this hitter was handed me l)y (he deputy collector, J. C. Sullivan; h(» also said if I was disposi^d to coiitril)ute, that h(» had blank checks, that I could Hign one, aud Dr. AMott, would see what our parts would be, and (ill out the blank check widi my part of the fund. I signed th«< cheek, and the dejtnty collector, J. C. Sullivan, informed nw! that tin* monc^y due me for the month of Augus(r, 1880, was kept on that blank <-heek ; taking this tr) be true, 1 was satisli<'d, being willing to do my jiart. I have done, considerable service in helping the 'le])uty collecior, J. (J. Sullivan, to pn( down Idockading, tor whi<'h F in-ver made out any pa^-account, being told l>y him that the, goNcrninent, wonld not allow nn\ any pay tor extra HITVicCH." J. K. Hendnx, lllk ville, April 10, 1HH2: "ColhM^tor Mott is not iinlebted to me for anj' Hcr vices." THE SIXTH DISTRICT OF NORTH CAROLINA. 393 Q. 1 want to ask you in regard to some of your officers drawing pay in two capacities at the same time — double pay, as it lias been called. For instanc(^, a de[»uty is shown here to have plied in the way 1 have stated, for ])olitical purposes, ;iiid I Ix'lieveMr. Mcintosh so understood it. 1 think hestated lu'fc in his e\ ideruM', the other d;iy \\v did not so undeistand it at that time. I do not know what h(^ meant by that. I know that it was my understanding t h;il the money was contributed in that way, and I be- lie\e he so iindeistood it. r.y Senator McDiLL: (). 'I"he deputy collectors, as I understand you, weie i)ai(l fiom the allowance made you for su<*li purpose? — A. Yes, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 395 Q. When the gangers made nptlieir accounts and tlicy were found to be correct, were they paid ont of that sum advanced or souiewliere else '? — A. No, sir; they wei'e paid from tlie department here, and by a war- rant. Q. So yon had no control over that? — A. I liad no control of tlie ganger's checks. They were rctnrned to my ollicc, to my charge, to be delivered to the ganger. Q. When a ganger made np his ac(;onnts, were you called to cei'tify to its correctness in an ofticial way, or did he make it n]> and send it in? — A. I 'eiy din'erent <'(»urse towards the ollicers and tin', laws after that. As the campaign in ISSOdrcw on, Bruiu'r, as he stated here lli(; othci- day, withdrew from the serxice, I think to i)arti<'ipate in that campaign. He calculatcfl it was going to get ]U"etty hot, and wanted t(» i)e on iiis own side. I tiiink that was his main reason for w i t h (1 la w i 1 1 jf . THE SIXTH DISTRICT OF NORTH CAROLINA. 397 Q. I call your attention to J. IST. Suininers; do you wish to state any- tliingin regard to his statenuMit '? — A. 1 remember that Sumuujrs apj)lied to me to be sent to a distillery in Wilkes County. Summers lives in Iredell County. Wilkes County is some distan<;e north of Iredell, lie came to nu^ and told me a distiller in Wilkes County had requested that lie should be sent to his i)lace. I asked him how he came to make that request, llej did not give a satisfactory reason for it, and it seems to nie that it was rather an unusual (drcumstancefor a man away off uj) in the mountains to send down to Iredell and take a rather ob,scure man for a storekeeper, and I refused to assign him there. Ilebecanuioftended, and went on and made some statement about his political contributions,^ which were untrue. I do not remember now what he did state, exce]»t in his atlidavit, Miiich is jjublished in that document. I replied to it^ and I deny what he says. Q. Your answer is in the executive document; liave you anything to say in regard to J. C. Barclay's testimony, and especially in i-egard to Daniels's distillery? — A. I would like, if I could, to see liarclay's testi- mony, what he says (Barclay's testimony handed to witness. "Witness examining). This upper distillery was eight bushels capacity, and it was afterwards reduced to four bushels. I think that was for the reason I assigned a while ago, that he could not operate an eight bushel distil- lery all the year around with the water he had; that he had to have water of a cooler temi>erature. The point I wanted to make was in re- gard to some statements he makes here about the number of Daniels's distilleries ; that they M^ere operated in tAvo instances in the name of other parties, and that we did not know that Daniels had any connec- tion with the Freeze distillery until after the trouble at that di>';tillery. Of course, I, as collector, could not help that, if a man wanted to run a distillery under another name. Of course I would have objected to Dauiels running a distillery and expressed my disa])probation of it, but I could not have helped his running that number, and I do not know that he had anything to do with starting the Freeze distillery. He may have had a connection with the whisky that was in it, in trading with Freeze^ and I believe it turned out that way some how or other, but my recol- lection of the multiplication of stills in the Daniels case, was in the investigation we made of it; that he wanted a larger supply of water.^ I heard, and could not get it for the amount of corn he wanted to stilL Altogether, he wanted to still eight bushels the year around, and he could not do that with the amount of water he had. Q. You mean at one place? — A. Yes, sir. If he had separate stills he could move one down the branch and utilize a i)ortion of the water for the mashes, and in that way he could operate them. As much as I have had to do with distilling in that district, I know very little about the modus operandi. I never was in but two or three distilleries in my life; that was all attended toby deputies. We investigated the matter, and tliat was the result of our investigation. It was allowed to go on. Q. ]\Ir. Leonard made a statement here, I believe, to the effect that you had made an arrangement with him that all over $50 must be paid to some purpose by him. State what you have to say about that. — A. Well, ]\ir. Leonard in his evidence was conveying the idea that hisortiee was given on condition that he was to do that thing. I made no such (jondition. I never allowed myself to do anything of that kind. When he was appointed, it may have been that I told him I would like him to make an application of a certain amount of what he received for a cer- tain ])urpose. (»>. You mean a political purpose? — A. Yes, sir. He said it was all 3 ^8 COLLECTION OF INTERNAL REVENUE IN right. He went off to another county, I think, some different section, as I did not see him for some time, or if I did, I (lo not call it to mind. At any rate, the necessity did not arrive, or it was i)rovided for in some other way. Q. When you say for a political pur])ose, do yon mean that some par- ticular tem])orary i>ur]»ose occurred just at that time? — A. Yes, sir 5 it was wanted for a particular purpose. Q. You do not mean that it was to run throu.uh the whole of his serv- ice? — A. Oh, no; it was merely some indebtedness for political print- inii' that we wanted to relieve ourselves of; it was a newspaper debt. Q. But he was never called on for it ? — A. Ko, sir. Q. And never paid it! — A. At least he said so. I did not know but that he had paid some of it, but when he said what he did, it was recalled to my memory that it was provided for. Q. In a different way without calling- u])on him ? — A. Y^es, sir. Q. Do you wish to nuike any remarks on Mr, Crane's report? (The witness was handed Mr. Crane's report.) — A. The date of the report is May 2, 1874:, made to S. W. Perrj", supervisor. Q. Addressed to him ? — A. Yes, sir. Q. There are seven specilic charges made in Crane's report. In the first place, that you signed the deputy rolls in blank ; as the answer is in there, you may state on oath if that answer contains the truth. — A. 1 thought you wanted to ask some questions in regard to the report. Q. You say, generally, that that answer you have made to Crane's report contains what is the truth ? — A. Yes, sir. Q. It is such as you would make on affidavit? — A. Yes, sir; I think so ; I went over it the other day. Q. I think Mr. Crane states that you received credit on your disburs- ing accounts for $1,125 paid to Kestler. Did you receive such an amount on Kestler's account? — A. No; I only received $05. Q. Did you ever receive any such credit on your disbursing acconnt on account of Kestler? — A. I do not understand you; are you asking about the amount I paid to Kestler? Q. As to the amount you paid Kestler. — A. I paid him $05. Q. No more? — A. No more. (^. AVas your disbursing account credited with any $1,125? — A. I do not know; my disbursing account shows that I i)aid $05. Q. And that is the only item? — A. On my account — disbursing ac- count. What I wanted to speak about in connection with the matter was the animus of Mr. Crane. Q. Your answer to Mr. Crane's report was in writing to the depart- ment? — A. Yes, sir. (^. And you do not care to supidenuuit that, exce])t to say that it is true? — A. That is wliat I wanted to say; that these statements that I make in this answer to Mr. Crane are substantially true, as I remem- ber them. (,). The date of your answer is May 15, 1874 ?— A. I think that that re|)ly to ( 'lane's icport is about correct. i). You think tiiat Cram; was sent there for the purpose of getting up something to cause your removal '. — A. That is my impression. (}. 'i'hen you were remov(Ml in consequence of that report? — A. And I JM'ard afterwards that lie gloated over it, and then still further, afier lie, I'ound out how the acctount had been adjusted in the department, that he express! d some regict about it. (}. .Mr. (.'rane expicssiMl some regret ahoutit? — A. Y'^es, sir. (}. Tliis witness here yesteiday, .Mr. Ileiidei'son, statcMl that he heard THE SIXTH DISTRICT OF NORTH CAROLINA. 399 liim say, on investigation, that it was all bosli, but yon were turned out ofoftice on account of it t — A. Yes, sir. Q. And upon iinesti;4ati()n,were restored in about tliree or four weeks ? A. Yes, sir. Q. Make any statement that you wisli in reganl to other matters, — A. I do not kuow of auytliin<>; else. Q. It is alleged that JMr. Bryan, one of your d('|)uti('s up in ^^'ilkes, where there ary a gi'eat luany illicit distilleries, dicl not break np or at- temi»t to break ui)any; have yon any explanation about that? — A. That is explained in this reply to Mr. Crane's report here. By Senator McDill : Q. Mr. Kestler stated in his examination. Dr. INfott, that you came to see him, he thought, once or twice about the vouchers, and in a conver- sation you said, that Clarke had done this; that Clarke thoufiht Kestler was in the service ; that yon stated to him that a man by the name of Millen Walker got some of the money ; and that it was frequently the case to draw money over one man's account and pay it to another. Please state whether you had such a conversation and what you said. — A. No, sir. I had no conversation with Kestler about that. 1 went there to get that voucher signed, so as to makeup an amended account. He, as I understood it, under the advice of Ramsey, was disinclined to comply with the request. 1 went to him and told him that a mistake had been made in the matter of these vouchers, and I wanted him to correct it, making an amended account, and give the true amounts, as the other parties to whom the money was paid had done. He seemed to demur, and I think I had to go to him twice before I got his signature to the voucher. Q. Was that this sixty-five dollar voucher? — A. The sixty-five dollar voucher 1 wanted to put in the amount of his account. His statement that I wanted him to sign a paper exonerating me is false, because there is no possible way by which he could have given me a piece of writing that would have put the matter in a different light at all. I only asked for the voucher for 105. Q. What I called your attention to is his statement that you said it was a frequent thing to draw one man's money on anotlier man's account. — A. No, sir ; I think there is an instance or two in which money was drawn on one man's account, or some that had been drawn on one man's account was under an arrangement of the party, on condition of certain help being extended, as in raiding, where a man felt unsafe about going to a distillery and he wanted helj), where the government had not given more men or allowed sufiticient force ; there were several instances in which that was doue, but I do not remember the names or anything except in these instances here that you spoke of. I want to express myself again in regard to Kestler's statement, that I went to him to sign some paper to exonerate me. It would occur to any one that it would be impossible for him to give me anything to answer that purpose. The only thing I wanted from him was his voucher for $05. He did not want to give me that, because he thought he had some advantage, and I understood it was on the advice of IJamsey. Eamsey would not put his voucher in at all for the true amount, though I obtained from hiui a separate receipt at the rate of $100 a month, I explained to Kestler that it did not make any particular difference whether he did it or not, that I would rather he would put it in, so as to show how the account stood, but that if he did not want to do it, it was all right, that it could not be of any great advantage to me; at the 400 COLLECTION OF INTERNAL REVENUE IN same time I preferred bim to do it, and passing- tlirougli the town a;:ain, 1 understood that he was inclined to do it, and I went to see him the second time and got the voncliei'. Cross-examination by the Chairman: Q. Where does Clarke come from ; what country is lie a native of? — A. J. A. Clarke? Q, Yes ? — A. From North Carolina. Q. What part of the State ? — A. From the center, Granville County, probably. Q. He came to you, as you tell us, from Mr. Perry, and he was thor- oughly recommended, except that he was inclined to drink !— A. Yes, sir; Mr. Perry recommended him to me as a good man, to use his own expression, a " first rate, good hearted^ clever man." I did not know Clarke. He had been in the revenue business with Mr. Young, and I thought it behooved me to get some one who knew the business. Q. He came to you at the very start ? — A. Y^es, sir ; at the very start ; he helped me to execute the bond, something 1 did not know anything about. There was some difliculty in complying with the rules in exe- cuting the bond. It was for that purpose he came ahead of the trans- fer of the ottlce. Q. Y"ou stated, I believe, that you were absent in the campaign dur- ing the time covered by these vouchers, and necessarily left everything to Clarke ? — A. No, sir; I do not think I stated that. If I did it was a mistake. I said that the early period of my ofiicial administration covered the campaign, and that these matters were all put upon and left to ]Mr. Clarke, on account of my absence and employment in that campaign and otherwise. But it did not cover the whole period of the A'ouchers. Q. You do not mean to say that there was any campaign going on in De- cember, 1872, and from the last of March, to the 30th of June, 1873 "?— A. No, sir; I do not think you ever got anything from me that makes that appear. I said, I think, if I remember anything about it, that I was away a great deal about that period after the campaign ; that I had a good deal of private business, and very little to do with the office during the winter. Q. You said that these Kestler vouchers were of a character that were often left to clerks to get up, and to prepare for the department "? — A. No, sir ; I did not say that — you mean to sign and get up ? Q. Yes, sir; prepare for the adjustment? — A. No; I said that these matters were left to the clerk to make up a quarterly account. That was what I (lid say. ii. Did you not say that it was usual, generally, for the clerks — left to them — to make uj) tliis kind of accounts ? — A. 1 do say that the collectors delegate to the clerks and deputies authority to sign their names to detail work in their offices. Q. You say Mr. Kestler remained about ten days, and you found he was inetficieiit? — A. I found he woiUd not be efficient in the way I wanlt'd. (,). Till' reason vou give is tli;ithe was feeble, one armed, &c., and you put W'idker in to do ids wuties, and their expenses commenced in traveling about the country, that I would have to assist them, and that went on np to the last of my ad- ministration. Q. During the time that the Kestler vouchers were being filed instead of Mr. Walker's, Mr. Mcintosh's, and Mr. H. Y. ^Mott's, who did the serv- S. Mis. IIG 2G 402 COLLECTION OF INTERNAL REVENUE IN ice in fact? Did either of tliem make complaints about their pay — why it did not come on? — A. It appears H. Y. Mott said nothing about his voucher, and it turns out he did not know he had to put one in until he was called on by me for this amended voucher. I will state, here, that H. Y. Mott made no comi^laint about it, for the reason that he had in- structed me to pay a note of his in the neighborhood there — some eight or ten miles below Statesville. I nmke the exjdanation so as to clear up the thing in every way that I can. He owed a man by the name of Xeal some money. Q. Having asked you to pay this would keep him quiet? — A. I su])- pose so. Another thing was, I think I paid my brother some money during that period. I remember I had his note for an amount that 1 furnished him to get his medical education with, immediately after the war, and it is probable that some of it might have been applied in that way. I know that we had a settlement several years afterwards. We had matters running on for several years, and I make that statement for the purpose of explaining why he did not call on me. These are the facts. Q. AValker left and went to Illinois before he got his money, and left Mr. Clarke to collect it? — A. Walker must have made a mistake about that; because, as I told you, I advanced this very money during that winter, and I applied a portion of it to the expenses that he had asked me for in advance to pay for his ganger's tools, »S:c. I think that Walker got mixed on that ; and that he was not aware, even at that time when he said it, that he was entitled to his pay as deputy until these vouchers went in. After he had been a ganger his pay was held from time to time, and he did not get his ganger's check, which, probably, was often the case; and he concluded that it was because his vcmchers were not in proper shape ; and when those vouchers were sent to him to amend while he was in Illinois, I suppose he thought, though he had had the benefit of the money from time to time before he left, that there must have been something wrong al)out his account, that we had not yet got his money. Q. Did you ask leave to file these anu'nded vouchers, or did someone in tin* department there requii^e you to do it ? — A. I think they required it there at the department. Q. Did you tell us, at any time, when they were put in ? — A. I think I mentioiHMl yesti'rday that they were put in about the time they are signed, and I only Judge of that by the disposition I had to file them as soon as I got hohl of them. I know that it was expected at the depart- ment that they should l)e filed. I know that in accordance with that ex])e(;tation, as they were in a hurry, I ])ut them in immediately, because they wanted to straighten the account. Q. Whom did you tile tliem with? — A. I cannot tell yon that. I do not rciii('iiil»er whetliei' tliey were ])ut in by me in jx'rson or forwarded l)y me. (}. To wliat branch of the department? Mr. ilaum said, yesterday, lie did not think tlx'y went tlimngh liis office. — A. I am not sure about that. I do not know how that is. (}. It w as not necM'ssary at tliat time for the adjust ment of your account, for your account had ahcady Ix'en adjusted.' — A. 1 do not know that. The h'tters we leceived from time to time h'ad me to l>elieve it was not ailjusted; ;iiid Miis statement of limitation of allowance in the compen- siitidu accounts, wiiich I did not know about, went to make me believe Miat it w;is not settled. 1 sn pposcd they Were adjusted at that time. I THE SIXTH DISTRICT OF NORTH CAROLINA. 403 bad no reason to l)e]ieve tluit they had not been, because there liad not been anytliiiig- said about it except in these letters. Q. In rehition to the political assessments, you told us yesterday that in 1880 they amounted to $14,000 ?— A. I think so ; l)et\veen 814,000 and $15,000, that I know al)out. Q. And there was some sent directly to ltaleijj;h ? — A. I think so. Q. Have you any idea how many officers there were on duty that year? — A. I think about one hundred and tifty. Q. You did not call on men toi)ay that were not making any money ? — A. No, sir; I did not call on them to pay. Q. When did you begin to collect political assessments ? — A. I l>egan inquiring about it sometime before the Chicago convention. Q. I mean during your administration. — A. To make political assess- ments on the officers? Q. Yes, sir. — A. I never had any regular assessment upon them until 1880. We would throw in a little around, and I might have called on some parties to assist me in the matter, but there was no regular assess- ment before that time. Q. Did you give that receipt (handing paper to witness) ? — A. Yes, sir; that is ray handwriting. Q. (Keading:) Statksville, April 24, 1872. Received of J. A. Ranisav, :$50. J. J. MOTT, Chairman Dist. Com. A. Isu])pose that was done of Mr. Ramsay's own accord. He wanted to make some contribution of that kind, but I never sent out any circu- lar or made any general assessment on the officers until 1880. Q. Did you consider your order to your subordinates to cease swear- ing out warrants as legal ? — A. I did not think it was illegal at the time, Q. Forbidding them to execute part of their duty ? — A. No, sir ; for the reasons stated yesterday, I thought that the cases were oi)en and that we had sometime to run in which j^arties could be indicted. Q. In relation to the abuse that politicians, speakers, and newspapers, and others, heaped upon the revenue officers, was there no excuse for it at all % — A. The politicians ? Q. Or anybody abusing the revenue officers. — A. I do not think there was in ray district. I never infringed on anybody's rights. I do not think you can cite any instance in my district, under my administration, where anything of that kind was done. Of course we had some fights and difficulties, but it grew out of insults and things of that kind. Q. I do not allude to ])ersonal lights or difficulties, which may happen to anybody, but what I mean is this: Were not the revenue officers in your district, and in your State, active, hard-working Kepublican poli- ticians ? — A. Yes, sir; I think they were generally Q. AVhen your political enemies were tightiug you, they had the ex- cuse that they were lighting their political enemies in the officers of the government? — A. ]>ut you did not tight fair. Q. That is a matter of opinion ? — A. I>ut you let it ii.(^\. too hot ; you let it go too far altogether. Q. Do you recollect some of the complaints made against revenue officers, that they rode through the country armed and terrorized over the people? — A. That was said. Q. And carried Idank warrants, and Just tilled up people's names ? — A. I did nothing of the kind. 404 COLLECTION OF INTERNAL REVENUE IN Q. That wiistlie marshals '? — A. We did not allow the marshals to do that. Q. I asked you if that were not true, if these complaints were not made? — A. Yes, sir; complaints were made, but in that district I do not thiidc of any particular instances. There may have been instances of it, but I know it was complained on the other hand that there was not a sufiicient amount of care manifested on my part in assisting the marshals to do these very things you are talking about; and as a con- sequence that district became very much i)opularized all through that country, because we would not allow the marshals to do these things in connection with my office. Q. Have you not in the service of the department a good many violent men — fighting and reckless men in the use of weapons and things of that sort? — A. Yes, sir; some very courageous fellows, but they are generally men of pretty fair character, and they are under all sorts of restraint. Of course we had to have l>old men to do the work that was to be done there. They would run out any other kind. Q. Some parts of your work require men of courage, and a good deal of it. Xow, about these distilleries, you say under the old regime that men could not so well give a big bond as they could give two small bonds'? — A. Y"es, sir; that was one reason assigned for the change. Q. What is the liond required for a four-bushel capacity still ? — A. I really do not remember; |r)00, I think, is the distiller's bond of that capacity. Q. Now, for a eight-bushel capacity, how much would that be ? — A. In the same proportion ; if four bushels were $500, eight bushels would be $1,000. You can understand how much, more readily they would be able to get a man to sign a $500 bond than a $1,000 bond ; it requires two sureties on a bond, and it was less difHcult to procure them. Q. You say Jim Harris was a colored man you thought well of; you used the word "well"? — A. Yes, sir. Q. I ask you if he was not considered a man having a bad character in consequence of facts developed on the fraud commission ? — A. 1 heard some reports of that sort, but know nothing of it. Q. Was it not shown by the fraud commission that when he was made a candidate for Congress he sold out to Deweese; was not that sworn to before the fraud commission ? — A. You said so. CJ. Was it not shown ? — A. 1 do not remember ; 1 never knew that was the case. Y^'ou charged so much on us down tliere that I cannot recol- lect it all. Q. 1 have not been able to get a copy of Harris's political api)oint- ments, when he was going around through the the district, except for the month of September — at least for a part of the month of Sei)tem- ber — isso .' — A. He made some speeches in September. . Il<*re is a copy i)urporting to have been taken from the llaleigh Signal (►!■ the issue ol' Se]>tembei- "2i. I do notknow wliether it is true or not; l>ut 1 got it from a respectable genth'inan, who copied it olf and sent it to me (handing to witness). See if .nou know iinytliing about tliose appciintments. — A. ( I'iXamining.) Yes, sir ; I think Harris si)oke at liiese pliiees; I know he sj)()ke at Mayliew's, and I know at this phice culled " Mott's drox'e"; that is in the neigliborhood of States- \ilh'. \\ inther he went to the others, 1 am not sure. (J|. Do you I'ecolh'ct whether these statenn'uts are correctly given ? — A. (Reading-) " Mott's (!i(ne, Septend)er 1'5." I do not know; I know lie spoke at tlu'se two phices. \ suppose that is correct. I know he ma(h' some speeches whih', he was deputy. THE SIXTH DISTRICT OF NORTH CAROLINA. 405 Q. You see I am following Mr. Pool's exiiii'.iiintioii. On investi^^atioii you were restored ? — A. Yes, sir. Q. What investigatiou was made ? — A. I suppose the investigation by thepe accounting officers in the internal-revenue service. A man by the name of Tompkins was at the head of accounts iu the internal - revenue office. It was to him that T went and asked if he had ex- amined the accounts in the Comptroller's Office ; and if he had not, tliat I desired he would do it. That if he woidd, I thought he would ent<'r- tain a different 0])inion with regard to these matters. lie ap]»eared to be a little pettish about it and careless, and said he did not have tinui. 1 insisted that he must take time, or I would go to the President al>out it; and we got up a little stir tlien^ in the office. I left and went back the next day, and asked Mr. Tomi)kins if the matter had been looked into ; and he went on to say that he thought the matter was all right, and gave me to understand that the President insisted on my being restored. Q. That is what you allude to when you say the matter was investi- gated ?— A. Then I'told Judge Settle and Mr.\Smith to go to Mr. Doug- lass and get a copy of the charges. That was after I saw Mr. Tomp- kins and insisted upon it. By Mr, Pool : Q. Waf! Mr. Douglass the Commissioner at the time? — A. Y''es, sir; Commissioner Douglass. They went to- Mr. Douglass, and then came to me with the statement that Mr. Douglass said the charges against me were that I was not giving personal attention to the office, but dab- bling in railroads and in farms, and would not attend to my official busi- ness. He wanted somebody who would give the office his i)ersonal at- tention. Judge Settle and Mr. Smith knew that, I had told them of the complaint that Mr. Crane had made and explained it to them. They went to the President. The President instituted some inquiry about it — at any rate I was reinstated. Q. I understood you to deny that you signed that abstract that con- tained the Kestler vouchers ? — A. I did. Q. Mr. Clarke said that you had signed it as a mere matter of form; you say you did not sign it at all ? — A. I did not sign it at all; and I think you must have called Mr. Clarke's attention to the wrong one ; I do not know; I will leave that to him to explain. I did sign the amended abstract. Q. You say you left these matters to Mr. Clarke, relying on his expe- rience to tix it up in proper form ? — A. Y'es, sir. Q. If they were not signed by you, of course they were not sworn to by you ? — A. No, sir. Q. Were they not required to be sworn to by law! — A. Y'es, accord- ing to what I have heard since ; but it has not always been done in the collectors' offices of the country, as I understand and have been so in- formed. Q. As you knew that he had made up the vouchers and sent them on, and you had not signed them, relying upon him. Y'^ou knew that you had not sworn to them, of course? — A. I knew after that; but I did not know then I had to swear to that account unless he had told me. If 1 did not state it, I do state so now. I never saw these vouchers until after Crane's report. Q. Do not all the forms furnished you from the department have a l^rinted oath upon them? — A. 1 do not think all of them do. I think most of them do, and that all went off in the same way — not sworn to. 406 COLLECTION OF INTERNAL REVENUE IN Now siuce that occurrence I have been more particular about it. But tliere are iustauces iu wbicb, if the form had to be compHed with strictly and the accounts got up in time, they would suffer a good deal of incon- venience and trouble in such offices on account of that. Q. Do you suppose or believe the department knew these accounts had never been sworn to ? — A. I do not know that tliey did. 1 want you to understand that I did not see those accounts, and did not sign them. The money was furnished me under the allowance, and I em- ployed men and paid it out under the allowance without reference to the (juarterly account which was made uj) by Mr. Clarke during that period. Q. There has been some confusion in my mind about tliis matter. Let me see if I have got it correct. A certain allowance was made to you for the expenses of your office ? — A. Yes, sir. Q. You disposed of that allowance as you thought proper in the em- ])loyment of clerks, depnties, &c. ; you had a sort of voucher showing what deputies you had employ ed, and what you had paid them, and if the total exceeded the amount of the allowance they cut you down. That is right, is it notf — A. Yes, sir; that is right. Q. Did you understand that no money was received on these Kestler vouchers except this 8(55 ? — A. 1 understood that the account was ad- justed there iu accordance with the letters we received. It must have been delayed. I do not know about that. I say I received no money on the Kestler vouchers to my knowledge, because I did not know the Kestler vouchers were in there. Therefore I could not have told him I received the money on his vouchers. That is what I want to state. Q. Xow, I understand, from the testimony that is in, that you had drawn all the $1,125 on the Kestler vouchers, becanse the government had cut it down to $100 a month instead of $125 a month ; and instead of paying that money to Kestler, or keeping it yourself, that you had,, when the mistake was discovered, paid it over to Walker and those other deputies who had actually done the work ; but the money was drawn on the voucher put iu by Mr. Kestler? — A. That is the very point I difier with you about. I say I could not liave drawn the money on the Kestler vouchers, although the vouchers appear there. I be- lieve the account was settled without reference to the Kestler vouchers, becanse the amounts were funislied in advance of tlie vouchers, from time to time. He went iu there in October, and we put in no voucher till in -January some time. At least it did not reach the de])artment until January, and as a consequence I did not know that any money was being drawn on the Kestler vouchers. I think that they settled the account without reference to the names of the men that appeared. I thought, possibly, in view of those letters that passed between the uchers for more than was actually due, for the puriKise (»f increasing the estimate for the allowance ? — A. That is what he explained to me afterwards. (}. That is correct, is it 1' — A. I think so. That was his explanatioui to me. He (old me that was the custom he followed in the collector's ollice in Kaleigh. (^. How could that allowance be increased in that way when it had alreadv been made.' — A. The allowances could be increased during the THE SIXTH DISTRICT OF NORTH CAROLINA. 407 fiscal year, just as they were fioiii the ix'iiod tVoiii .Mav I'O to Jmie .")(l, 1873. Q. That was on account of the alKtlishiiieiit of the assessor's office? — A. It was done in other instances in North Carolina, in tlie history of the seryice, and Chirke's idea was that if we caUed the attention of the ofdcers in this way that we wanted more money, that we might jioto worlc, and they would make a larger allowance. That was his explana- tion to me. Q. The sixth charge relates to these Kestler vouchers, and in answer to it you say, "Kestler received pay as deputy, but never did service in that capacity." That is the charge. You quote it as you see there, and your answer is — Mr. Kestler was aiqioiiitod a tleputy at the earuest solicitaliou <>i" iironiiiicnt nir-u. I kept him a short time, and Ibund he would not suit me as sueh, and he was er, and he probably acted as deputy too. Q. Did he have much work to do ? — A. I do not remember. There is not much work on that side of the mountains. You have some knowl- edge of it. There are not nmny distilleries over there ; l)ut we are compelled to keep an officer there. Q. Y'es, if tliere is need? — A. It is impossible to send a man from this side of the mountain ; in those days he would have had to travel some hundred or two hundred miles out there to withdraw a barrel of whisky. Q. Mr. E. 1>. Drake is a general storekeeper, is henot! — A. Yes, sir. Q. And has been since when ? — A. I think it was since 187C. Q. :N"ot back of 1870 ?— A. 1S75 or 0. Q. Drawing full pay except Sundays ? — A. Yes, sir. Q. Is his work not nominal? — A. You are mistaken altogether about that, I think. Mr. Drake does as much service, I think, as any general storekeei)er in the district. Davie County is in his division. As I re- member, he has in the neighborhood of fifty distilleries, and always a considerable number of them under suspension. There is no doubt about that; he does his business except in the way I told you, when called upon to go to two or three places at once. Q. He is also the editor of the "American"? — A. Y'^es, sir; he writes some for it, as well as others. Q. But has been until lately owner and editor? — A. No, sir; the other man is the owner, and has been for live or six years ; I think ever since 3Ir. Drake has been storekeeper, and probably a year or two be- fore. Q. Has Mr. Drake permission from the Commissioner to engage in any other business ? — A. I do not know that he lias ; I think that he has an idea that it does not interfere with his duties, and that the spirit of the law is not interfered ^vith l)y reason of it. Q. How long was W. P. Drake a storekeeper ? — A. He never was a storekeeper. Q. What was he ? — A. He was a deputy. Q. A deputy, I mean — how long ? — A. 1 forget; you have got it in that abstract ; I think six months. Q. His duties were nominal? — A. Y'es, sir ; although a man by the name of Howell, and another man there, in accordance to my reply to ^Ir. Crane, did do his work during that period. I see I have stated there in that reply to Crane that he did little work ; and that is my recollection about it. Q. How much monej' was lifted, collected, or contributed, as you please to put it, from the officers of your department, in the prohibition campaign of 1881 ? — A. I think very little. Q. Y'ou do not know how much ? — A. No, sir ; it was a one-sided business; it went with a whoop. Q. There was some collected for that purpose ? — A. I think so. Q. Do you know how much of it was spent in support of a paper ed- ited by Mr. Spellman ? — A. I do not know whether any of it was or not. Mr. Pool. We object to that class of questions generally, but not in this particular case. 410 COLLECTION OF LNTERNAL REVENUE IN The Chairman. Would you object to my asking;- liiia about individ- uals tliat were paid iu that cami)aign ? Mr. Pool. Yes, sir ; I do object. Senator McDill. We have a right to show assessments for the cam- l)aigu fund, but this is not in the line of our investigation. (The question was ruled out by a majority vote.) By the Chairman: Q. You cau tell how much had been raised in that prohibition cam- paign ? — A. Ko, sir. Q. Cau you give us an idea? — A. Xo ; I have no recollection. I do not think there was any general contribution by the officers for it. I think that here and there the men put iu sometliing. Q. Has not your office been administered, in part, with a view of making converts from your political opponents ? I mean by that — if you do not understand me — have you not picked up young men of large family connections and got them into positions in the departments with the expectation that they would become Republicans, and bring their friends with them ' — A. 1 would say, in reply, that I had two purposes in selecting men for these places. One was, as I stated this morning, to transfer as much as possible the odium that was put ui)on the serv- ice there in that State, to the Democratic party; aiul appointments were made there among the J)emocrats against the wish of my political friends, and with that view. I know I was threatened at one time with a move against me on account of that. I escaped at the time by de- fending' myself in my conversation with my political associates, that it would result iu the way that you see it has. That is one defense of my course, and 1 confess that I luive selected men with that view to some extent. I had the places, and men were applying for them, aiul I would give them to such as T thought best, and with both these views. Q. Did you not get a good many converts out of the jaws of the law, so to speak, and were not many men accpiitted for violating the revenue laws and permitted to escape on i)ayment of the costs on condition that they would embrace the true faith ? — A. No, sir ; I never nmde an arrangement of that kind in my life. Q. I do not ask you particularly. — A. I would be the man in that dis- trict to effect such an arrangement. I know it was charged directly to me, and that it was thought, too, by your friends, the members of the Democratic party, that tliat was done. It was a mistake. (^. NN'as not the present collector, your successor, a strong Demo- crat ? — A. Y<'S, sir. (}. Did he not get into some trouble with the Revenue Department! — A. Xo, sir; he never had any serious trouble with the Revenue Depart- ment. There was never anything that he might be the least alarmed about or afraid of. lie had some spirits seized. It was an ordinary case of sri/urc of his wagon and team. i5y Mr. Poor,: (). State the date. — A. It was before my time — before I went iu as collcctoi'. I iiaxc heard that since. That was before Mr. Coo])('r became a ii*f|»ul>lican. W'licu I came into position there as collector, Mr. Cooper was still a I )cmorrat. I!y the ClIAIWMAX: (^>.. In iSTli? — A. I tiiink so; yes; I am sure of it. 1 think he was a Democrat iu isTij, ;iud think it was during that campaign he becauu'. a Ifepiiblicaii, or later, l)ul there was u;) charge against him whatever, THE SIXTH DISTRICT OF NORTH CAROLINA. 411 and never has been since I have been in the bnsiness. I am satisfied that Mr. Cooper was without any restraint, and was in no danger on account of that matter at any rate. It went before the (Commissioner and was dismissed, and no evidence was brought against him. And that liappened tliree oVfour years before lie became a Ucp'i^'^'^^'i"- Senator Dill. Is he talking about some papers that we have had here i The Chairman. Yes, sir; from Commissioner Holmes. Q. There is one part of the case you nexer heard, perhaps; that is the allegation that an important witness ran Mway from the State, and that was the reason why it was dismissed. The man they first examined, and upon whose information the warrant was sworn out, did not appear at the trial. That is only the statement of Mr. Holmes; noreccn-d made of that except the witness called and failed to respond. AVas not .^Ir. James Williams, of your county there, a fierce Democrat until he got into some trouble with theEevenue Department? — A. He was a J)emo- crat. He got caught out there blockading. Q. He came out of the troidde a Republican, did he not? — A. 1 have been hearing that question asked here. I do not know how that was. Q. It was not very long after that that he became a Republican ? — A. I do not know, and I do not want to prejudice Mr. Williams, and do not want to leave any prejudice by not making a statement of relief to him.. I remember nothing about it. I think if it had been done I would have known something about it, because I was the collector. It hap- pened after I came in, and I think that Mr. Williams became a Repub- lican after I came into the collector's office. He is, at any rate, a very earnest Republica n . Q. Did you know, when Mr. Cobb was appointed at ^Nfr. Pearson's request, that he was guilty of these frauds that are charged i — A. I un- derstood that he had been charged with them. He wanted some other place, and I refused to give it to him on that account. These raiders — you know how that is yourself Q. Yes; I understand it is something different from the responsibility of the regular dei)uties. I will ask you if there is any instance where you appointed Demociats in jjursuance of the policy you have spoken of, that they did not become Republicans, but continued to preserve their political integrity? — A. Yes, sir; there were several instances. Q. In the majority of cases, however ? — A. They came to act with the Republican party. I will say that in all my dealings with men in these appointments, that I made it a point not to speak of political matters in connection with their appointment, because I had more respect for a man's feelings. I did not want a man to have any such state of teeling Avith regard to the matter. Q. How did you make known your wishes to the officers under your control in legard to the assessments — by a general letter addressed to them? — A. I want to say, and have it appear in proper language, in speaking of this appointment of Democrats, that I made it a rule never to allude to politics when I was approached with regard to appoint- ments. It was not made a condition of any man's avqiointmeut. There may have been two or three instances where I Avanted to get rid of a man, and told him that I did not care to appoint him on account of his politics. But I made it a rule not to have that a condition in appoint- ing officers, but left it to its own course, and left him free to act as he chose. AVith regard to political assessments, I wrote a letter, and it was received by each man who contributed anything. In that letter 1 stated that no one would be interfered with in his position if he failed to contribute, and he was under no constraint with regard to it; that 412 COLLECTION OF INTERNAL REVENUE IN was about the substance of it. That I would have do eoiitributious uuless they were williugly given. Q. I omitted to ask you a question about Mr. Tenipleton. Was it ever brouglit to your knowledge that Mr. Teini)let9u paid W. M. Cooper $30 a month for board ? — A. I think Mr. Temple'ton tokl me that, but it was after he left Mv. Cooper's. Q. Did you not regard that as an indirect division of his pay? — A. I do not know whether I inquired whether Mr. Tem])leton kept his horse there. It was more pay than was customary, I regard 8liO a month as being a fair price for a man and his horse in that country ; and then Mr. Cooper lived well, and had things comfortable about his house. Q. Did you at any time borrow some money from old nmn Temple- ton? — A. Yes, sir. Q. Did you pay it back ? — A. It was under a misapprehension, and with regard to this very thing I was talking about some time ago — this newspaper business, I was under no necessity of borrowing money from Mr. Tenipleton that I know of, and that matter ran along — my recollec- tion of it is because of this newspaper transaction — until he called my attention to it. I have not been in the habit of borrowing from oflicers. Q. You repaid it, but you do not remember when? — A. I do not re- member when it was; but whenever he called it to my attention, I think. By Mr. Pool: Q. You have had deputies commissioned who were not receiving pay, had you not ? — A. Yes, sir. Q. It was when they were on duty they received pay ?-^ A. Sometimes they did some service, but did not get pay; but I had men on commis- sion about through the district, if any matter was to be attende])ed out and I put another in for the time, and we changed them about in that way. Q, The point I wish to make is, that deputies held commissions that were not on duty and did not get pay. — A. Yes, sir. Q. That order to your deputies not to issue warrants at tlie time named was nothing more than a ]>ostponement of the prosecutions? — A. Tbat Avas the way I regarded it. That the parties who were guilty of any unlawful action would be subject to the same punishment by ed, and it had goiKi out of my mind until (loveriKU- N'aiice mentioned it, (). \'oiir idea was that Mr. Perry sent him in theic for the ])ur])0se of getting up something to ;it1'ect your I'cmoval t — A. Yes, sir. (). And then Mr. i:nnis;iy helped liini to get t hese things lixed nj) ? — A. \'es, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 413 By tlie Chairman : Q. I want to ask you a question about your restoration to office. Was not your restoration the effect of political indiience ? — A. I do not think so. It Avas purely a matter of justice, and was so regarded by tlie President and those who interceded for nie. ]Mr. J)oiiglass, it seeiiis^ was indisjmsed tohave me reinstated, and .Air. IJristow seemed disinclined too. I think that Avas a selfish i)urpose of liis, because I was not a snp- l^orter in his political ambition. I know he did not regard me as one ot his friends. Q. And Mr. Bristow and 3Ir. Douglass oi)posed your restoiation '. — A. I do not know; I heard that yesterday. Thad an idea that Mr. IJris- tow was opposed to it. I did not think it was on account of these things, because Mr. Douglass said to me yesterday it was — I under- stood him to say, he was opposed to it — because I was uot giving my personal attention to the office. It is the tirst time I have had a con- versation with him on the subject. Q. Do you know Avhere Mr. Crane is now, who made this report ' — A. I think he is in California. Q. He is not in this part of the country? — A. Xo, sir. Q. Did Mr. Cameron see the President for you? — A. Xo, sir ; he did not go to the President. Q. Whom did he go to?— A. To Mr. Douglass. D. C. Pearson recalled to make the following statement : I think I answered yesterday to a question that I never dealt in whisky at all. I wish to state that immediately after the war, when there were a great many soldiers there, I and other merchants did sell whisky, and I paid no tax either. I did that myself, and I did it through others. I can fully and emphatically say that for years I have in no way assisted in cheating or defrauding the government in any manner, through and with whisky; not in the slightest degree for anytime since I have been a government official, or prior to that time for years. By Mr. Pool : Q. You mean that directly after the war, before the internal revenue system got into operation there, and really when there was hardly any State law, without a State license you and other merchants sold whisky in Morganton? — A. That is what I meant to say. Q. During the period befV»re the laws, State and Federal, got to be established ! — A. There might have been some revenue laws then. By the Chairman : Q. Did 5'ou know that Mr. Burr had bought out that distillery ? — A. Never, until Mr. Walton had stated it. J. A. Clarke sworn and examined in behalf of Dr. Mott. By Mr. Pool : Question. Do you know that Henry Mott rendered service as deputy there, during the last quarter ending June 30, 1873 ? — Answer. Yes, sir; I know that Dr. Henry Mott was a deputy. Q. How did you come to fail to send in a voucher for him ? — A. That was one of my njistakes, I thiidv. Q. I want yon, upon an examination of these vouchers, to state wheth- er Dr. Mott signed any of the original vouchers that were put in for Mr. Kestler — the abstracts for the three quarters. — A. (Examining.) Dr. 414 COLLECT lOX OF INTERNAL REVENUE IN Mott (lid not sign any of these originals. 1 think I so stated in my evi dence. Q. You signed his name for him ? — A. Yes, sir. Q. Y'ou say he was not sworn? — A. No, sir. Q. Were yon anthorized to sign Dr. Mott's name ? — A. Yes, sir; he anthorized me to sign his name to all vonchers. Q. Did yon consider it a forgery to sign his name ? — A. Not in the least. Q. That appeared rather indirectly in yonrevidence.-=— A. I think the chairman asked me if it was a forgery; I did not so consider it. Q. Yon say yon did not consider it a forgery, becanse he had anthor- ized yon to sign his name? — A. No, sir; 1 did not. Q. Did Dr. Mott sign the amended vonchers? — A. Yes, sir; he signed the amended — those three amended vonchers from the 1st of October to December, 1S72, Jannary to March, 1873, and April to Jnne, 1873. Q. Embracing the three qnarters of the Kestler vonchers. Mr. Hen- derson said here yesterday that yon made a mistake in making np his account, by which yon sent in a voncher for a less amonnt than he was entitled to; did you sometimes make mistakes of that sort in making np acconnts ? — A. Yes, sir ; we often made mistakes. I had a great deal to do then. Q. You were called on frequently by ofiflcers to nmke up their acconnts besides ? — A. Yes, sir ; 1 was. Q. Did yon feel anthorized to sign these Kestler vouchers for Kest- ler? — A. 1 did at the time, or would never have signed them. I did not consider those vouchers worth anything of value. 1 said that at all times. Q. I think yon signed Kestler's name to one or more? — A. Yes, sir; I had written time and again for it. Dr. Mott was away so much that I did not ask him, but jnst went on and sent the vonchers. I always stated that I wonld not consider them any good, for the government only adjusted the account under the letter of allowance, as it was. (}. Yon did not consider it any forgery at all to put Kestler's name to them? — A. No, sir; or would have written more like hiui ; but did not try to do that. Cross-examination by the Chairman : (). Yon swore, when on the stand before, that Dr. Mott did sign them, did yon not ? — A. 1 don't think 1 did, sir. Q. Did you not tell me that you nnide them up, and Dr. Mott signed them as a matter of form ? — A. I said that the collector sometimes signccl the reports in blank; I made that statement, but I don't think he signed eitlier one of tliose as you i)ointed them out to me. The name will show itself that Dr. .Alott did not do it. 1 did it. (^>. \'ou sairt; that is the way I looked over the matter; at least I did not consider them worth anything then. Q. They were all sworn to, were they not? — A. Never have been. Q. Did not the law require them to be sworn to ? — A. Yes, sir; they so read; but they never have been in all my clerking. Q. Did not the law require it ; did yon not know when you signed the vouchers that the law required these men to swear to them ? — A. No, sir. Q. You have seen the law ? — A. I don't think the law bears on that in 1872, £0 far as 1 know. Q. (Quoting.) No acconut for the compeusation for services of auy clerk, or other person employed in auy duties in relation to the collection of the revenue, shall he allowed, until such clerk or other person shall have eertitied, on oath, that the same services have heen per- formed, that he has received the full sum therein charged to his own use and henetit, and that he has not paid, deposited, or assigned, or contracted to pay, deposit, or as- sign, any part of such compensation to the use of any other person, or in any way, di- rectly or iudirectly, paid or given, or contracted to iiay or give, any reward or com- pensation for his office or employment, or the emoluments thereof. Mr. Pool. What date is that? The Chairman. Passed May 1822; brought forward 1S74:. The Witness. That law passed since I had anything to do with the revenue. Q. You say you never have seen that law ? — A. No, sir ; the circulars were issued to all the officers after I left there. Q. You knew that Walker was a deputy ? — A. Yes, sir. Q. And you did not know that Kestler was not a deputy? — A. No, «ir; there were a great many men commissioned there to different work. Q. Was not that circular sent out because of their sending up vouchers that were not sworn to? — A. It was issued all over the TJnited States. Q. What did you suppose the certificate meant, if not sworn to? — A. Of course it is put there ; but I never done it. Q. Why di. I say I held this original voucher in my hand. — A. I did not so understand it; anybody can see I did not. (^. Mr. Dwire is acquamted with the handwriting of Dr. Mott, is he not ? — A. llv. ought to be. (}. He swore the other day that the amended copy was not Dr. Mott's handwriting, and he thought tliis was the original, but was not sure of it. — A. 1 cannot help what Mr. Dwire swore. if. Yon say it is so i)lain and jyalpable? — A. It is to me. I wrote it so often and knew how he; wrote it. if. Did you i)ay A\'alker his money ? — A. I i>aid him part of it. (}. When? — A. W(! had a rnnningac<-ount, \ValI;er and I. I got him onf of tiireeor Ibiir s(;rii|»es, and sent him money after he went to [llinois. I was a kind of agent. lie roomed with me, and we were intimate, and he h'ft some debts for me to pay. 1 lived up all 1 could, and sent liim money to Illinois. i). ^'on were on the slaiul here twice ; why did you notmake the cor- re.ctif)n while here/ — A. About those vouchers 1' (). Yes. — A. I uiuhTstood that was tiie way I said i(. I was sur- prised when I heard (lie e\i(|euee was otherwise. THE SIXTH DISTRICT OF NORTH CAROLINA. 417 Q. You read your testimony over ? — A. No, sir; I left that iiiglit. Q,. You never read your testimony over ? — A. Nctt tlie " reeulled" testimony. 1 left that night. Q. You said in your answer to me that you made out these voucher accounts for a larger amount than was due, for the i)uri)oseof iina-eas- ing the estimate? — A. I wanted to show we ought to iiavemore money in tlie district. Q. You said, further, it was known to Dr. Mott and by eveiybody ; that you made no secret of it ? — A. No secret of it — of the accounts be- ing larger than they were ? Q. Let me read you a little from your testimony (quoting): By Mr. Pool : Q. Aud yon generally made np all tlie papers in the office to be sent to the depart- ment f — A. Yes, sir. Q. You (lid not submit them to Dr. Mott; yon usually signed them witliout expla- nation to him ? — A. Yes, sir; he hardly ever looked at the face of the pai)ers. Q. He signed them, relying npon your experience ? — A. Sometimes had not seen them at all ; sometimes signed them in blank. Q. That is correct, is it ? — A. A great many other papers besides the disbursement accounts. Q. ((Quoting): Q. On the faith of your experience as being sent there by the supervisor? — A. Yes, sir. A. There were 120 odd reports to make. Q. (QiToting:) Q. All these deputies gave jou authority to sign their names, when they were ab- sent, to formal papers f-^A. Generally so ; I am not certain. Q. These papers were made up (juarterly? — A. Y'es, sir; every three months. Q. The department knew the number of deputies down there? — A. Yes, sir; they were allowed so many, at such prices. Did the department know of Kestler being a deputy ? — A. I really thought they knew the number of deputies down there. Q. That was another mistake? — A. I am not responsible for the tes- timony. Q. (Quoting:) Q. And if a deputy's name went in that whs not among the number, the department would know — although you certihed to it — it was a mistake? — A. Yes, sir. A. They would know the name in the report, of course. Q. If Kestler's name went into that number of deputies to the de- partment, they would know that? — A. Did not mean that. They would know the deputy's name was there. Q. Tliey would not know that he was no longer a deputy ? — A. Not at that time. Q. (Quoting:) Q. So there was no danger of anybody being deceived np here? — A. No; no money here would then be allowed. Q. There was no possibility of drawing any money on such things? — A. No, sir. Q. Now, was not some money drawu on the Kestler vouchers ? — A. The Kestler vouchers had nothing to do with the government. They al- lowed Dr. IMott so much money to run his ottice. We sent a voucher from anybody there ; so running his office did not require him to furnish names of men when appointed. AYhat they did was only a matter of form. Q. It did not matter whether the men did the service or not ? — A. Only that the work be done in the district by Dr. Mott upon a certain amount. S. xMis. lie 27 41 H COLLECTION OF INTERNAL REVENUE IN Q. Joliii Smith liaht it no harm. I did nothing I thoujjht was wrong in the matter. Q. You regarded it alias a matter of form ; the department knew all about it here? — A. Yes, sir. t^. So your mistake could luit have any effect up here at all ? — A. No effect, as the department did not allow anytliing of that kind. Q. AVliat would you consider serious business, if this was all a matter of form? — A. 1 don't know. Q, When a man signed a voucher, swore to it, that he had done work, aud it went in there among others to the government — that was a mat- ter of form? — A. Did not pay on those things. Q. What did they pay on? — A. On the letter of allowance, allowing him to hire so many to do the work. Q. Did you make out a list? — A. The money was all paid before one of those things were signed by anybody. Q. Paid to vrhom? — A. To the men working there. Q. You heard that Walker testified he did not get his money until afterwards? — A. He got money paid along. Q. If Walker got the money, why make out a voucher in the name of Kestler? — A. A mere matter of form. Q. Please tell us what was the substance and not a matter of form — a serious, substantial thing — in the revenue department? — A. I do not understand your question. Q. Of swearing to a voucher and getting mone.\ on it? — A. Did not get money on it. Never has been money collected on a form. The government did not i)ay on tlie voucher, oidy for those papers showing the money spent by the collector in running his oftlce. Q. When a collector takes a voucher from one of his deputies and sends it off to tlie department he gets credit on his compensation ac- count? — .V. They adjust the account according to his vouchers, showing how much he had — what they allowed him at first. Q. I have asked you, and will ask you once more, if the signing of a sworn voucher, or a voucher required to be sworn to by law, in order to obtain ])ay for the services of a deputy or ganger, was a matter of form, what was a matter of substance connected with the revenue department there? — A. Never signed one to get pay, for the money was allowed be- fore tlic vouclier went there. Q. llow diy Ills rejiorts, and Dr. Mott knew all his deputies. Q. lie did not know whether the man worked all the time or not? — A. lie liired them. Q. How about the ganger who gauged a lot of whisky? — A. The ganger mad(! his reiK)rt. (^. A «!ertined coj)y? — A. No, sir; service, amount of work done, and expenses. Dr. Mott di in the collector's office that would be a matter of substance. Let me read you a little more of your testimony (quoting) : Q. Yon swore the other day, when yon were exuniined in chief, tliat he did know of it ; and that it was done for a certain pnrpo.se ? — A. That was in the statement I niaile ^t tlie time that the office of assessor was abolished — not about the Kestler matter. Then the chairman, iu quoting- from your testimony in chief, says: Q. You made these accounts uj) for these gaugers? — A. Yes, sir; made up their A'onchers. Q. In the case of the deputy collectors you say that was done for the purpose of increasing the estimate, as you have explained? — A. Yes, sir. Q. That was known tn Dr. Mott ? — A. Yes, sir; known to everybody almost; wo made no secret of it at all, an down wrong in that wayf — A. Such things niiglit happen. Q. It seems that none of these vouchers were sworn to by Dr. Mott — these originals — and you say you signed them as being sworn to, though he did not swear to them; did not that apply to all the vouchers sent up here as well as to Mr. Kestler's f — A. This applied to the whole of the accounts. Q. Do you not think that ran clear up to the time Mr. Crane made his report? — A. Yes, sir; I think so. Q. Do yon not know it ran up to that time t — A. Don't just now. Q. So that with all the ofticers this was the nnderstanding, that these vouchers were handed in and sent off as a mere matter of form, there being no possibility of the office being deceived here? — A. That is my understanding of it. Q. Do yon know what Mr. Horah says about it ? — A. In speaking of this — after I was clerk for Dr. Mott — of signing these A'ouchers and talking of it generally, he said he had done it often — signed ganger's names to acconnts in order to ])ut his reports in as required before the 10th or 15th of the month, and he had not heard of any trouble abont that, and no one can say but that John M. Horah is an intiuential man iu Eowan County ; he is the clerk of the court in Salisbury. Q. He was in Mr. Wiley's office ? — A. He was clerk under Wiley all the time he was collector. Q. You were clerk in Collector Young's office and district, and the same thing was done there? — A. Yes, sir; did the same thing there;, that is where I got the idea; I never thonght it was -any harm; never heard of any. Q. Your testimony was read to you, in which you said that papers were sometimes shown to Dr. Mott and examined by him, and sometimes not '! — A. That has reference to the entire revenue business, I think. I don't think it had reference to this special business. Q. Did not Dr. Mott sign a great many papers except these vouchers t — A. When I was clerk, there were 122 reports nuide up quarterly. Q. You meant it to apply to all these? — A. Yes, sir; that is w^hat I meant ; to the general accounts of the office — reports, rather. Q. One huiiared and twenty-two a month?— A. 122 a month, and (piarterly. (). Would it not be very difficult for the collector to give his personal attenti(»n to them and swear to the truthfulness of them all? — A. Yes,. sir; I think so, so nuicli of it, and very few do it in this country. Q. Do not the absolute necessities of the service require the law to be disregarded in this res))ect ? — A. Yes, sir; I think so; it is impossible for the collector to be right on hand all the time for the reports, and they would be sometimes delayed. il. You said that no report was made here of the names of etween a signature of Dr. .Alott's and one forged ? — A. Yes, sir; I think 1 could. The ditfiMcnce between tliosii two signatures is cpiite marked. (^. Vou do notthiniv it would re(piireaii expert to see that difference? — A. No, sir. Mr. I'ooL. There is nothing I'urther on that [toint we want to put in. Adjourned until Monday, rluly 17, at 10 a. m. AVasiiington, D. C, M>iie.st joa. Wlieic do you reside? — Answer. I icside at Aslie\ die, N. C THE SIXTH DISTRICT OF NOKTH CAROLINA. 425 Q. What is yonr profession ? — A. I am a lawyer by profession. Q. How long have yon been a practicing lawyer ? — A. Thirty-seven vears. Q. Have you a jn-etty fair general knowledge of the condition of the .sixth district of North Carolina — at least that part of it in which you live — in relation to the collection of internal revenue ? — A. I have a geu- ■eral knowledge of the cliaracter of the collection district west of the Blue Eidge. It is very general, though. Q. It has been stated here by witnesses that one of the chief causes of trouble in the collection of the internal revenue arises from the con- duct of J)enu)cratic politicians, newspapers, and si)eakers in dissatisfy- ing the people with tlie revenue laws a id enconragiiig them to resist- ance; will you })lease give the cotnmittee your information as to wliat dis- satisfaction there is in the district to the laws, and to tlie method of their •execution, and what are the causes for that dissatisfaction and trouble? — A. The question is very general. I will undertake to give my opin- ion about it, and, of course, it is but an opinion. The system — whether it is the system or the execution of it — has been unpopular in that country and subject to great criticism. There have been abuses in the manner of executing the law, and there has been resistance', to the law, a good deal of it. There have been riolatlom — perhaps a better word — of the law ; perhaps the country has been given to that idea. There has been a good deal of business in the Federal courts in the execution of the internal-revenue system. It is my idea that there have been many abuses there, but who is responsible for them I do not know. I juay use the term that it is unpopular — that is, the manner of executing the law. There is a good deal of opposition to it and political discus- sion about it; a good deal of stump-speaking 7>ro and cou, justifying it, and appealing to the people to be loyal to the law; and there have been exposures, not so much of the law as of the manner of its execution. By Mr. Pool: <^. There are two classes of revenue officers; a marshal and his offi<;ers ])rosecute offenders, and I will be glad if Mr. Davidson will bear that fact in mind and make a distinction. — A. I will do so. The Chairman. I have no objection to that. Mr. Pool. Whether the scope of the power of this committee will reach abuses by officers of the court is a question. The Chairman. Xo, sir; only so far as it affects the collection of the internal revenue would it be a proper sulyect of inquiry under the reso- lution. Mr. Pool. Their business was siuijdy with the offenses that were com- mitted, without any regard to the revenue or not. The Chairman. The commissioner issues warrants binding over, and the marshals make arrests. Mr. Pool. None of these officers are connected with the administra- tion of the collection of the revenue, wliich is the expression used in the resolution, the " administration of the collection of the revenue." The Chairman. I do not care to inquire into that branch particu- larly, but still, so far as they are conne(;ted in any way with the collec- tion of the revenue, I think it is a legitimate inquiry. (To the witness:) You can distinguish, coh)nel, as you goon, and allude to anything done by marshals and revenue officers. Mr. Pool. You contine him now to the revenue officers? The Chairman. Yes, sir. The Witness. Manv of the abuses under the law haveb^eu by mar- 426 COLLECTION OF INTERNAL REVENUE IN shals, perhaps the most noted of tlierti, that is true. Really I am hardly able to determine between those who were marshals and those who were deputy collectors, I huxe been trying to think what men belonged to each class. 1 knew notliing of their commissions or powers only as ac- cepted by the public. If I understand, Judge Dick — if you will allow me to state — made an order as judge that a United States commissioner should not issue any jirocess on the application of a marshal, but it would be only on the application of a revenue collector. I believe that was the rule. I may be mistaken about it. Com[)laints became so uni- versal that Judge Dick did make an order restraining the i>ower of the marshals. There seemed to be gangs of men going around hunting somebody to arrest, so that Judge Dick issued this order that deputy marshals should not go and get out processes, but only execute i)ro- cesses when they came into their hands ; that the process should be issued only on the application of the revenue collector or on the infor- mation of some one who had furnished it to the collector. Out of that system grew a great many troubles which were complained of bitterly by the people, and in some instances led to almost crime. It amounted to crime and rendered the execution of the law very unpopular, and, I may say, odious. By Mr. Pool : Q. You mean Judge Dick's order? — A. Xo; I do not mean the order, but before the order was made. I am speaking of the power of the marshals and collectors. I know the complaint was that these marshals would go around and make inquisitions and get out processes and the judge made this order restraining them from that, and deciding that the Commissioner should onl;\ issue their warrants on the application of the collector, or on information of some one to the collector. By the Chairman : Q. Some one outside of the marshal? — A. Yes, sir; to deprive them of that inquisitorial right to take out processes. It had been greatly abused before that. Tlie marshals would go around with blank war- rants in their pockets, and hold their courts — a sort of itinerant com- uiissioner holding court — making a regular circuit. It was abused in that way until Judge Dick interfered. Q, \^■hat was the character generally" of the revenue ofticers you were acquainted with for ])eace, good order, «S:c.? — A. It is very hard to dis- criminate who were the revenue oflicers — we had several bad men in the counliy — and pretty hard to give a geniMal character to a whole com- munity. It is very hard to determine that; but the general character of the execution of the law was not good, without regard to particular individuals, for I do not know of whom I am speaking. It seems to me it was in the hands of reckless men wlio were objectionable to the country. Q. Was it executed with harshness and violenc^e frecpiently ? — A. Yes, sir; tliere was a good deal of comi»laintof that kind. Q. Can you give any inslances of violence in the execution of it on flu' ])art of the ollicers '. .Mr, \'<>()L. l>y a i<'\enu(' olUcer oi' a marshal ''. The ClIAlKMAN. P>y the revenue oflicers. A. I iiave two oi- three cases in jny mind that led to bloodshed and homicide; wlietlier they were revenue olhci'rs i)urely or de[)uty mar- siials — it is \cr.v hard for me or i'ov anybody to know what i>osilions they lield. i remember the ease of ;k man by the name of Woods, on the Caiiey I''(»rk (»r llie 'i"iiclose of making the storekeeper come to terms with the distiller ? — A. Yes, sir; I was not applied to as being responsible, but I was complained to as a bondsman that my principal liad not done right about it ; the storekeeper had not divided his compensation with the distiller. Q. And the distiller complained to you as his bondsnmn that he had not done it? — A. I do not think he alleged that I was to be responsible on my bond, but told me that he wanted me to interfere, and asked me to make him do right by him, which I understood was to divide his com- pensation. I have heard of others, but do not know of any others. I liave heard there was some arrangement of that sort. Q. Will you state whether the officers of the Eevenue Department have been active politicians or not! — A. Well, these revenue gentlemen I speak of, are the only two called to my knowledge. Mr. Axley is very active; he is a decided partisan, and I am informed uses his office for l)olitical purpo.ses. I do not think he is a bad man. I think he is a man of rather quiet, good character, but I understand that he does it, and it is complained of very bitterly. Q. How about Mr. Williams ! — A. Mr. Williams is a sort of negative 3nan. He is a Northern man, and was a stranger in the country. He has no following' and no relations. He is a sort of fancy man around the hotels. I do not know much of him. He is not identitied with our ])eople. 1 believe he came from Ohio with Mr. Hunt. 1 le has not identi- fied himself with the peoi)le. He is rather a (piiet man. I have never seen anything very bad about him, nothing objectionable in his ])er- sonal conduct, but I understand that he manipulates his office, and is an jicti\e ])oliti(Man. (^. IIav«^yon known other revenue ofticers besides these deputy col- lectors that you s])oke of? — A. Yes; 1 have known storekeei)ers to use their odices and to liave paid their regular assessments for jjolitical l)nri»oses. 1 have known that for years, at least for some time, and the tnilii is, J had something to do with the settlement of their ac- counts — to draw on tlie <'olh'ctor; and in getting their accounts settled they wonhl he taxed for their political assessments. I ha\'<* known, then, in that way, that th(;y were a(;tive in i)oliti('s, and they always idh)wed their acon and ti'eated improi)erly because of tlieii' politics, (). I thought, perhaps, from your jtersonal knowledge, that you would know something of the political comi>le\ion of thosi; luonght to trial. — THE SIXTH DISTRICT OF NORTH CAROLINA. 431 A. Yes ; most of tliose whom I liave defemled have been Democrats ; l)ut my personal observation and experience is that I have defended nine Democrats to one liepnl>lican. But tliat may be th(i case because they came to me, not because it was any reasonable fractional portion of those wlio were on the docket. It would not be fair for me to say that they \vere i)rosecuted because they were Democrats ; but they complained of it in that way. Q. The Republicans were let off" — the Democrats ]nosecuted for the same thin<>-? — A. They say so; that is the sentiment. Many striking <;ases have been pnt to me in that way. They would come to me full of lire and blaze because they had a difficulty with, perhai)s, some officer on election day, and they were arrested the next day, or something of that sort. Q. You only undertake to say about those for whom you have ap- peared ? — A. Yes, sir; the majority of this number were Democrats. They generally alleged that they were prosecuted because tliey were Democrats, unless they got into very serious trouble, where their neck was involved; then they generally came to me without regard to poli- tics. Mr. Pool. I understand that the testimony relating to the marshal and his officers is not competent here; but there is a good deal of it on the record. I would like for it to be stricken from the record. The Chairman. It has not been decided yet. Senator McDill. 1 would not like to exclude testimony unless ifc was very irrelevant. While I think the administration of justice Is a very different thing from the administration of the collection of the revenue^ yet there is another branch of the resolution as to inquiries in regard to the resistance of the revenue which appears to me to be i^ertment. Cross-examitmtion by Mr. Pool: Q. You s])oke of Mr. Franks, and said you did not know whether he ^was a deputy marshal or a revenue officer; is not Mr. Franks a sheriff now? — A. Yes, sir. Q. Of what county ? — A. Swayne. Q. By what majority is that county Democratic? — A. I don't know, sir. Q. Very largely ? — A. I do not know that. I know he is sheriff. Q. EUM'ted by the peoplel — A. I think so, yes, sir; he was firsb api)ointed by the commissioners — perhai)S there was a VM(;aMcy — but then at a regular election he was elected. I think he turned Democrat* nbout that time. I saw him the other day, and he said he was a Dem- ocrat. At the time of this alleged trouble he was a very different man then — on the other side. Q. The people seem to think that turning Democrat ratlier condones liis offense? — A. I suppose so, in that community. I think I coukl exi- jdain that better, perhaps, in another way. It is a pitor'c.)uaty, ami very remote. It was very difficult to get a sheriff" — one who \v is capa- ble of executitig the office; and Mr. Franks had had some kiiovvltMlgc of public business, and had repented, he said, and they took him on trial. The truth of it is, it is very hard in that county to give a bond. Q. Who was Mr. Franks' opponent before the peoi^le? — A, I da not know, sir. Q. Do you pretend to say his opponent was not a ompotent mm! — A. I could not say that, but it was a very hard matter to g\>t a sliefiff. Q. Do you not think tlie county could furnish one otiier man b -sides Mr. Franks for sheriff"? — A. I do not know about that; I know the of- fice has l>een vaciMit t"oi- uiontl)s. 432 COLLECTION OF INTERXAL REVENUE IN By the Chairman: Q. Ou account of the difficulty of filin,i;- a bond? — A. Yes, sir; I do uot know what was tlie trouble; but the sheriff's father (J. J). Franks) lives in ]\[acon, and is a man of i)ro})erty and can afford to <>o on his. son's bond, and make a j!;ood bond. 1 think that is the reason he was appointed sheriff, and then liis business capacities, and I think he has made a gooou abont population, but about the olhcers. — A. J do not know of any fifficeis there except Mr. \\'illiains. THE SIXTH DISTRICT OF NORTH CAROLINA. 43S Q. You know of storekeepers ? — A. I know Mr. Cannon. Q. Are tliey (juiet, inoffensive men — the storekeepers I — A. Yes, sir. Q. You said if the revenue laws liad been executed with a little more discretion and cousideratiou they would not be so objectionable to the ]Jeiuocrats ? — A. I think not. I said to the public, perhaps. Q. You used the term "Democrats." — A. I did not mean that. I meant to tlie ])ublic. Q. You said those officers did not seem to have any sympathy with the public. AVhat sort of sympath^^ with the public would you require Ihem to have in the execution of the law ? — A. 1 would require them — my idea was that men of character, standing, means, and social position should have been api)0inted for the execution of the law, and that it would tlien not have been of so much objection to the i)ublic ; men re- sponsible to society for their conduct. Q. Men who have property? — A. I do not mean that. I did not say that. I said answerable to public sentiment. Q. To public sentiment? — A. Answerable in their social relations in life. I do not mean to say that a poor man may not be a genteel man. I do not mean to say that a revenue officer cannot be a gentleman, neither. Q. Of course you do not mean to intimate that an officer ought to have any such sympathy with violators of the law that he would be lenient in the prosecution of their offenses ? —A. No, sir ; I do not mean that. I mean to say this: We had some deputy ]narshals there who have executed their processes without complaint, and have done their duty fully, completely, and satisfactorily. We have had a few of those. Q. Do you know of any want of sympathy with the ])ublic on the part of revenue officers for which a complaint could justly be made ? — A. Know of any particular cases ? Q. Yes, sir. — A. Yes, sir. Q. Name it, please.— A. I know of Mr. Williams having gone down into the country there. The complaints have generally been of the de- struction of 1)1 oi)erty. Q. Of what kind '? — A. Of property, and the rigid manner of execut- ing the law and making arrests. Q. The revenue officers did not make arrests? — A. He seizes the still and makes inquisition. He looks out for these things. It is his duty to do it, I believe. Q. It is his duty to inform where the offense is committed? — A. I know a bitter complaint was made of him as to the manner of executing the law. Q. What was the particular feature in his manner complained of? — A. He was harsh in his intercourse with the people and rough in his -expressions, and had no social intercourse with anybody. Q. It was his duty, however, to destroy illicit stills ? — A. I understand that. Q. That would require violence? — A. Yes, sir. Q. You would not suppose the owner of a still would take that very coolly ? — A. I sui)pose not. Q. Perhaps the complaint was more of the destruction of his still than of the words used while it was being destroyed? — A. I do not know what he said. Q. Was not the main complaint that he was a Northern man, a carpet- bagger, and made objectionable arrests of these people ? — A. That is not the main complaint. It is complained that he was a Northern man; S, Mis. IIG 28 434 COLLECTION OF INTERNAL REVENUE IN that lie came tliere without responsibility to the ])ul)]i(', and liad no sympathy for tbem in their wants or cliaracter. ' Q. I understood you these viohitors of the law — distillers and others — were tbe worst part of the eoinmunity; so uuieh so that their ])resenee at court attracted unfavorable notice from stran. Y(m mean arrested by marshals, ot" course?— A. Yes, sir; for vio- lation of law, illicit distilling, and soon. i). That is rather an inaccessible section of the country, and if a mar- shal had a warrant against him it would be very hard for the marshal to Und him, generally, and arrest him, if he chose to keej) out of his way ? — A. It is a remote mountain region, but not so iiniccessible as may be tupi)osed. I do not think it is. I have been accustomed to it. Q. Was not a public gathering a very convenient place for marshals to tind the men and arrest those for whom they had warrants? — A. Yes, sir; it might save them from riding eight or ten miles. Q. \Vas there anything improper about arresting acrinnnal, if he had a warrant for him, at a i)ublic gathering? — A. I think not, sir. Q. Y'et this man came to you and said it was political prosecution ? — A. It was the character of their complaints. Q. Would not that indicate to you that their idea of political prosecu- tion was rather frivolous ? — A. I do not think there was anything wrong- in making arrests on a public day. Q. They seemed to have the idea that when they came out to hear a Democratic speech they ought to be free from arrest"? — A. They genei- ally complained that these arrests were made with a view to attract their attention away from thedis(;ussion and i)roduce a conflict between rhe parties and produce excitement; that was the general comphiint ; however just it was I do iu)t know. Q. They seemed to have some sort of imi)ressiou that when they came out to hear speeches they should be exempt from arrest. — A. They gen- erally ('()mi)lained that these men rode over the country controlling the politics and throwing obstacles in their way, and the indictment grew out of that ; whether true or false [ do not know. (). You set out by saying there were some abuses on the part of the officers in the execution of the law. I suppose you mean revenue laws. Xow, can you name any particular ^instance where a revenue officer abused his authority as an officer? — A. I cannot discriminate between marshals and revenue officers to lay down particular cases. I know of a great many abuses, but whether they were by revenue men or mar- shals I cannot say. Q. You do not know of any particular case on the part of Mr. Williams, Axley, or the storekeeper you have named ? — A. No, sir. Q. You are, then, unable so to discriminate between marshals whose duty was to make arrests, and revenue officers that you could not say there was any instance in which a revenue officer abused his author- ity? — A. Only what I understood they have assumed to do; whether they had the x>ower to do it or not 1 do not know. I think I can safely say that the marshals assumed to execute the revenue — I think, per- haps, they assumed that without authority. Q. To the extent of arresting the offenders against the revenue ? — A. I think Burns got killed without any process in his hands. Q. He was a Democrat? — Xo, sir; he had been. Q. He was a deputy marshal ? — A. I think he was acting as deputy marshal. He attempted to make an arrest, and it was in evidence that he had no process. Q. You would not hold the collector of internal revenue responsible 436 COLLECTION OF INTERNAL REVENUE IN for him? — A. I do not hold anything as a witness. I do not kuow any- thing- about that. By the Chairman. May be it woukl simplify that thing by asking the witness if there was any revenue officer along with Burns! — A. I do not think there was. By Mr. Pool : Q. Did yon have any reason to believe the collector of internal revenue vas in any way imi)licatedin it? — A. Uidess Burns had some authority from the revenue department; I know of no authority as a revenue officer that he attempted to exercise. He simply came along there, and these i^eople had some jugs of whisky in the highway. He attempted to seize them, and got shot. They had been to a still-house, and had a iug with them. 1 appeared for the defense in the case, and the ])oint was, the officer had no authority to seize or make arrests; but he was connected with the revenue in some way. I think it was shown tluit he was a deputy marshal, or that he was in the act of discharging his duty. He assumed to seize tlie liquor and take it from the men. Q. Then he committed an assault, of course? — A. I suppose so; the defense consisted in that. I remember that distinctly. Hon. A. C. Avery sworn aud examined by the government. By the Chairman : 'Q. Where do you reside? — A. I live in Morganton, N. C. Q. What position in the State government do you at present hold? — A. Judge of the eighth judicial district superior court. Q. That is pretty near the center of the sixth collection district, where you live? — A. Yes, sir; nearly so. Q. Have you had a i)retty fair opportunity of observing the workings of the internal revenue system of collection of revenue, and through intercourse with tlie i)eople and their complaints, &c.t — A. 1 have had 110 connection with the internal-revenue service, and no i)ersonal obser- vation of the conduct of the oJticers alumt the distilleries or anything of that kind; but nj) to four years ago, when I went on the bench, I had practiced in the Federal courts and defended a large luimber of i)ersons indicted in my country. That drew my attention to the execution of the law. \Vhiit I know since of its operation within the last few years is probably almost exclusively what I have heard from others. Q. Will you give the connnittee, if you please, your statement, such as you m;iy be able to do, of the geiu'rid condition of things with refer- ence to the execution of tlu'law; how it is regarded by the people; whether or not it is unpopuhir; and if so, why? And tlie general char- acter of the men wlio executed it; the miuiner in which it is executed, ^c. A. The law has been iini)opular iVom the very close of the war up to the present time siiu;e it went into ojtei'iition. J)o you ask the reasons why it has l>cen un]K)i»ular? Q. Yes, sir. — A, So far as I know, 1 think, in the first instance, the law was unj»opular geneially among oni- pe(>ple, at least those who were alfected by it, because it was sonu'thing new. A large i)()rtion of our ]»eoi)lein many se(;tions had been accustomed to make whisky and ap- ph' l»randy, and relied n])on it for support, and the imposition of these tiixes — for at that time it was impossible to start small distilleries, they (Mtnhl not o|»erale under the law — bioke into their habits of a lifetime. T\\:\\ ma(h' it odious, and I think it was mad<'. still more odious by the niannei' of its execution. s\\\d now 1 think more recently it is odious to THE 8IXTII DISTRICT OF NORTH CAROLINA. 437 a great many of the better class of our ])eople because tlie manner of its execution tliey feel isha\ing a demoralizing effect ui)on tli(> country. (j>. Ifow so? — A. I cannot sjx'ak of my own knowledge; 1 can only give impressions, so far as I derixed them from i)eople in different (coun- ties; during this spring T have held courts in ten counties in the dis- trict. Tlu; idea of a great iminy intelligent men to whom I Imvc talked aud whom L have heard talk upon the subject is that blockiuling, ;is they term it, is less common than it was formerly ; but the idea is now that they can manage government distilleries and make more profit than they could by blockading, and it is gentnally by avoiding the law. Whether that be so or not I do not know of my own personal knowl- edge. Q. You are giving a general impression? — A. And the imi)ressiou of the people is that tlie execution of the law is demoralizing thei)eoplein this way; that this general impression, everywhere that I have gone, that the storekeepers are dividing with the distillers, and tlie fact that the government is furnishing in storekeepers' wages a large ])ortion of the fund that runs these small distilleries, it is understood that these storekeepers must necessarily — though I have never heard the oath which they take when they render their accounts and swear to them — swear to what is not strictly true. Hence there is au im])ression now that these inimerous positions of storekeepers offered all over the country to the young men around there whose ordinary occujiations would not yield them over ten or fifteen dollars a month outside of the revenue dei)artment, holding out temptations for them to commit fraud, if not i)erjury, in order, perhaps, to get these storekeepers' wages. I hear more complaint recently from the more intelligeut class of people upon that ground than upon any other. They thiidv that is calculated to demoralize the people of the country and destroy that regard for truth which ought to exist. Whether that is so or not I do not know, but the impression exists that it is so. Q. Is it not also one of the causes of comi)laint against this depart- ment that the offices connected v.ith it are ])erverted to political pur- poses; that young men are corrupted politically, I mean with the tempta- tion to secure small offices, to change their i)olitics, &c.f — A. Yes, sir; there is an impression that these positions are offered for that ])urpose, aiul that they are offered to young men who are the representatives of extensive families in the country, with a view to control their near relatives at elections. That is one of the grouiuls of prejudice against it. Q. Is it not also charged and complained of that men who were in- dicted are frequently eased off from the consecpiences of their indictment on condition that they change their politics ? — A. I have heard such a com])laiut, but I do not know anything of my own knowledge to give it color, and I would not like to give it as an o])iiiion from any knowledge of mine that such is the case; I have heard tlie charge. I do not think, if allowed to gi\ e my opinion, that Judge Dick ^\ould be a party to any such arrangement, if any subordinate might be or not. Q. Are the revenue ofticers within your observation active partisans ? — A. I thiidc almost all of them are among the most active partisans. Q. Are they not the organizers of the party aud principally run its machinery "? — A. It is understood that they have control of the organiza- tion of the Eepublican partj' in the district, and, so far as I know, in those counties where I heard anything of their political management, almost all of them ; but I su])pose there are some few counties in which there are exceptions. Q. Is it or is it not the impression now that the greater part of the 438 COLLECTION OF INTERNAL REVENUE IN fiauils coiiuiiitted are coinmitted in collusion w itli leveiuK' olticcis '! — A. 1 tliiiiic tlie iini)res.sioii of tlie county is that. As 1 said bct'oic, I be- lieve tliat blockading was less common, but the j;enoral iniprcssiou is that the distillers wlio run these small distilleries can oidy make them ])rotitable l)v coUiisiou with the storekeejters. It is a veiT (•(»iumon <'.\- l)rcssion to hear "that no man can buy corn at a dollar a l)usli('l and sell whisky at a dollar and a quarter a gallon. ears, we have had some i)ose you have a personal knowledge, more or less, of all the difficulties that have occurred in that country between the officers ami the people in your immediate section — Burke and ]\Icl)owell Counties. Have yon ever known any instance of shooting at any of the oflicers that did not arise from very considerable i)i'ovocation on the ])artof the officers? — A. 1 would not like to make a general statement about that. I would rather be allowed to cite i)articular cases that I recollect Just uow. (}. Very well. — A. Tliere are two cases in which 1 ai)])eared for the defense;. 1 l)elie>e they were deputy marshals; 1 am not certain whether uty collectors or not. One was the case of A. A. Wisennm, who liad a ])arty with him, and killed a man. (). li<' was a maishal '! — A. 1 am satislied he was just i liable. Another <'ase was that of an <»flicer who killed souu^ of the Snyders. (f. They were nuirshals, were they not? — A. I thiidv they were nuir •shals ; theie was a i»arty of ten along; two or three of them w ere deputy niarsluils; whether deputy collectors wen^ along at thci tinu' I t ])osi 1i\e about the circumstances. As I recall them now, he came up with n |»arl\ of soldiers upon a young man out in Hie coinitry, and without TPIE SIXTH DISTRICT OF NORTH CAROLINA. 439 tlis(;losiiig his ])urpo.se, and really without a warrant for his arrest, called uiinii him to " halt." The, mau was startled and started to run, and they sliot liiin, wounding- him severely. Judge Clark bound him over upon a warrant to answer in the State courts. Tlien there was the case ag linst Mr. Gillesjiie ; he was a deputy col- lector appointed by Dr. Mott in my county, and assigned to duty there. He went down to York's distillery to make some seizure; I am not stating this from my persooal knowledge; I was counsel foi' the Yorks, and my knowledge is that C'olonel (x.iither had four bills of indict- ment in the State courts against Mr. (Tilles])ie and those who accom.- patiied him on that occasion. One, T recollect, was for trespass in seizing the wagon of old Mr. York, and taking it, against the protest of his wife, to ^lorgantou to haul some still lixtures or brandy that were seized. I thiidv one was for assault ui)on old Mr. York. Q. Had they any warrant against him "? — A. They had no warrant against Mr. York. They had sonu^ waiTants, as well as I recollect, against his two boys, but they arrested old Mr. York and held him in custody. He was quite an old man, and was very much frightened, ac- <;or(liiig to accounts given; so mucli so that when accidentally he got loose from them he ran some two miles across the top of the mountains, and became sick from the exercise and fright, and died in two mouths after. Then they iuipressed the young man living there, and forced him to drive the wagon to Morganton. I forget the other assault. 1 think probably it was a charge of assault upon the wife of old Mr. York. Tliat conduct, I thought, was Avholly unjustifiable. There was no necessity for the violence. Q. Was that the occasion when they were fired upon, and Mr. Gilles- pie wounded, on their return from the seizure I — A. My impression is — it has been a good while since — that that was the occasion; that on coming out ot York's inclosure, when letting down the bars, they were fired into, and Mr. Gillespie was wounded, and a horse of young James McDowell killed. There was a good deal of feeling against Gillespie in that country at that time. Q. Do you think any jiortion of the feeling existing' as to the execu- tion of the revenue laws arises on account of the partisanship of the otticersf — A.. It is hard to distinguish, of course. There is some feeling against the ofllicers on account of their active participation in politics. It naturally excites some feeling on the part of the politicians on the other side. Q. Do you think that if the revenue was collected quietly, without partici[>ation on the part of officers in politics, that there would be less prejudice? — A. I do. Q. And a better feeling in the community generally towards the law and its execution, if it was dissociated from x^artisan politics ? — A. Yes, sir ; I think so. There is some ])rejudice on account of the impres- sion tiiat it is through the Revenue Department that the machinery of the Kt^i)ublican organization is kept up. Q. Is there anything yourself that jhiu desire to state in this connec- tion ?— A. Ko, sir; I know nothing of my own knowledge about the matter. Q. What is your ojiinion about the effect of this multiplication of stills — making so many small stills? — A. You ask my opinion about it? Q. Yes, sir. — A. Bs'fore I saw the experiment tried I thought it was best, in order to stoj) violations of the law ; and I believe, in talking with Dr. Mott about it, I said to him that it was desirable, if men would ran distilleries, to control and bring them under the law; that was my im- 440 COLLECTION OF INTERNAL REVENUE IN pressioii at that time; but since it has been tried, from what I liear, and with the general impression of the country about it, I think that the running- of these small distilleries with licenses — that the general im- pression pervading the community tbat they are all permitted to evade the \-AW for want of close scrutiny — is more demoralizing tlian blockading was. I did not think it would be so, but the experiment has been tried, and tbat is my impression now. Q. Have you any general impression as to the proportion of whisky made in these distilleries that pays taxes ? — A. I have no idea. I have never been in one of them. Just after the war I was prohal»ly in a blockade distillery or two; but I have never been in a government dis- tillery of any kind, and I could merely express an opinion on the part of others, and I do not know how far that is permissable as teNtiniony. I have heard expressions of opinion of the way it has been conducted,, and it has become a general impression. Q. I have heard it suggested in some official reports of agents here that about one-balf of the whisky made pays taxes ; do you know what the impression is in the community in regard to that ? — A. I think the impression is that there is certainly as much as half, on the average, that does not pay taxes; by one means or another it escapes. Q. Of course, assuming there is a corrupt bargain between the store- keepers and distillers, they are mutually in each other's power; and any amount of illicit distilling might be assumed if such a bargain was estab- lished ; that is so, is it not ? — A. I suppose so, from what I have heard of the management. Such a thing existing as a storekeeper handing" over the key to a distiller would enable him to have things his own way.. Q. Assuming that this corrupt bargain did exist between the two, the distiller would have his own waj-, because the storekeeper would be afraid to break it up? — A. Yes, sir; you migiit take it so. Q. What was the impression in regard to storekeepers being appointed there who are of kin or under the influence of the distillers? — A. The impression is that the person proposing to commence distilling would be allowed to select his storekeeper, though I have never been to the distilleries or anything of that kind. 1 understand in the community in which I live there have been instances where men were apjiointed as storekeei)ers to run the distilleries that were kept in the name of their own relatives. There has been also an imi)ression that so?ne of them owned the distilleries which they ran, and to which they were assigned as storekeei)ers. Whether it is true or not 1 do not know. For instance,, where people put them u^) on their own land or the land of the store- keeper. (^. One question I omitted to ask you. Mr. Raum has testified here tliat in many parts of the district it has been dangerous for a well- dressed man to ride through the country without some assurance to the public; that he was not a revenue ollicer. — A. I feel confident that that was not true — at least in any of the portions of the distri(;t 1 know. 1 know a very considerable iK)rtion of it. 1 am confident it is not true, and I know ])ortions in which theie has been charged a large number of violations of the revenue law. Q. What was the worst portion of the country where illicit distilling was supposed to l)e (;arried on '^ — A. A large number of jx-rsons were arrested from the South Mountain Range, the lower ]>art of Rurke County, and back of the South ]M(Miiitain Range, in Cleveland and Knfhei'ford; the upper corner of (latawba and the up]>er corner of Lin- coln ; and tlien ikm Mi of tliat is the Rrush Mountains, in Wilkes. A larger [)roi)ortion of arrests were in those s<'<'tions than in any other I THE SIXTH DISTRICT OF NOiH II CAROLINA. 441' know of east of the lilue Ilidge. Formcily a larfio luimbcr of arrests were made in Upper Transylvania. With the peojjle of those counties I had a jjreat deal of intcreonrse, because L defended a good many. Q. Do you know the political complexion of those regions you have described ? — A. AVhat is known as the South ^louutain region, in Burke, where these people were charged with illicit distilling, a large majority of them have been IJepublicans. In some few instances of late years one of the boxes has given a Democratic majority; but the majority of* the population were llepublican. Q. 'Do you know INIr. Jake Mull ?— A. Yes, sir ; I subhiitte«l a case for him under the amnesty that was given by Congress, or granted by order of Judge Uick. Q. Do you know whether he ever represented Burke County in the legislature or was a candidate for the legislature? — A. No, sir; Jake Mull — 1 think I have only seen him once since the war, and it was on this occasion when he submitted under the amnesty. When he came in to me to submit he looked like a Texas ranger. Q. He was pointed out here as leading Democratic candidate for the legislature. — A. I think his residence was in the edge of Catawba. His brother, Peter M. Mull, lives in Catawba. The upper end of his planta- tion is in Burke. He was never a representative or candidate. Q. I asked you if Mr. Tom Davis, a marshal, did not ride through a great deal of that country by himself, executing warrants. — A. Yes, sir; he rode through that mountain country at all times, day and night, I do not know that Davis was ever molested, or that there was any dis- position to molest him. I have defended as high as forty men arrested — brought into one court by Davis. I think universally' they had a kind feeling towards Davis. He was a very pnulent sort of man, and after arresting them he would treat them with great kindness and con- sideration. If he had contidence in them he would let them oft' to go and hunt their bondsmen, and never used rough or disagreeable lan- guage to them. So far as I know, he is popular among those peoi)le. Q. Do you know whether any of them he let off in that way to hunt their bondsmen ever deceived himf — A. I think they generally came up in almost all instances where he let them go. Q. And you say, then, to your best knowledge and information, that it never was at any time unsafe for a well-dressed man to ride any- where through that i)ortion of the country? — A. That general propo^-i- tion is not true. There are particular offlcers who had made themselves odious in that country who would not be safe. I believe I told Dr. Mott, in a conversation with him after this difficulty with Gillespie, that I doubted very much whether Gillespie, if kept up there, would be safe among those people, and I would be very much gratitied if he would re- move him. I wanted to save violence. The reason alleged by those people for their antipathy to him was that he had talked very impru- dently and roughly to them when he took hold of them. For instance, I recollect that it was generally circulated among those people, the Yorks and others, that Gillespie had said upon the streets of Morgan- ton that throughout all that South Mountain country they would swear lies, and that all of them would perjure themselves for a very small con- sideration. And that, and his conduct iu making arrests, had made him very odious. So it was with Deaver, one of his predecessors, who made himself very odious to the people there. Cross-examination by Mr. Pool: Q. Almost every point upon which you have been examined has been gone over hy other witnesses, and your evidence in the main is a re- 442 COLLECTION OF INTERNAL REVENUE IN ijapitiiliitioii of what has beea told; but there is one point that I desire to examine yon upon in the start before we go into details. You say that there has been a great prejudiee against the law itself, as well as the execution of it, and one reason assigned was that the capacity of the stills as required by the government was so large that those who had made it the business of their lives, many of them, were unable to distill under the revenue law ? — A. I do not know that 1 said these two things together. I said one reason why the law was odious was that it wask something new. It broke up the business that men relied upon for support; and in anotlier connection I said on one occasion, talking to Dr. ^lott — I do not know that there was any public sentiment about the capacity of the stills — the trouble was of that kind. Q. I may have misunderstood you, because it has been said in all of the reports against the system that a poor man could not run a still because they required such a large one ? — A. I don't know that I said it. 1 believe 1 have heard such remarks made, perhaps. Q. You said that you thought that illicit distilling would be decreased by allowing stills of less capacity than the regular stills, and before it Avas done you so advised it '?— A. I said that I had said to Dr. Mott in conversation that 1 thought it i)robably would be best to try to induce these small distillers to go into distilling, and that was my impression that it was better for the country until I saw it tried. Q. That would require a reduction of the ca])acity f — A. Yes, sir. Q. I understood you to intimate that the small distiller, at the reduced •capacity of four bushels, could not make money except in some corrupt collusion? — A. That is my impression. Q. Please explain, if you can, why the small distiller could not make money as well as the large one. — A. The calculation is not one that I have ever entered into. I stated what the public opinion was, and you hear the remark and expression of opinion there "that a man cannot make money at a small distillery when corn is a dollar a bushel and whisky is selling at $1.25 and $1.30 and do a legitimate business." (.}. i)o you know any reason why he could not do as well in a small distillery as m a large one"? — A. I could not make the figures. I only .state that the impression exists. I suppose that one reason why the chances are better at a large distillery is that whatever expenditure ther«^ is for fixtures, &c., as an outlay, is distributed amonir a greater number of gallons of whisky. That would seem to be api)arent. Q. P>ut the outlay to sucli a small distillery is very small, and would not exceed .*H)() or $200 ? — A. 1 do not know what it is. (). Did you ever hear any of the men who ex])ressed that opinion giving any r<*ason why a man could not make money when whisky was stdling at $1.'")~) a gallon and coi'ii at $1 a bushel? — A. I lu^ver heard any distillers giving reasons. (\). You have never heard any reason given for that opinion atallf — A. I do not know that 1 ev<'r saw the tignres made up by anyone. Per- haps i hav(^ seen the (igures made in some of the newspapers, but not in IIk'sc conveisations that we have had. i}. !)(» yon recollect ever seeing any figures made in distinction be- tween a small distillery and a large one in r<'gard to the relative piolits .' — A. I have only heard discussions as to the chaiutes of those small distilleries. (,). Then I understand the eliiirge !<» have been, those lunning small distilleries, to make money, must nee<'ss;irily have som(^ corrui)t arrange- ment with the storekeepeV; that is the i(>nitinent several different persons l)roi)Osed to him to embark in distilling with them. Q. Was that INIr. Urnner ? — A. A man in IJurke Connty, by the name ofN. L. Chapman. As well as I recollect now, lie said they ottered him — that was when they were paying $4 a day to storekeepers — from .seventy-five cents to $2 a day ont of his pay; but he declined to make any such agreement, and therefore was never assigned. Xo distiller would choose him. The distillers generally bad storekeepers assigned that they wanted. Q. I was not asking you for ])articular instances yet awhile. And you said the imi)ression among the better class of the community anressiou was general that that was so in the majority of instances ?= — 444 COLLECTION OF INTERNAL REVENUE IN A. That there was division of pay between storekeepers and distillers, whatever may be the consequences of that; and the impression was that it involved some sort of fraud upon the government. Q. Do you think, from your knowledge of the character of the store- keepers and distillers, that that impression can be well-founiiiaii ? The Cleuk. The Chapman the judge alludes to is a (liffcrcnt man fiom the revenue agent. Jiy Mr. Pool : i}. Ontside of Pruner and Chapman do you know any instance of an in(li\ idnal by nan)e — storekeeper or distiller — who was chai'ged with this division' of the pay of the storekeeper? — A. This nuitter is gen- erally a (ransa(!tion between the storekeepei- and distiller, and neither one; of Wu'AH can be; compelled to criminate himself. The impression is in the eonidry that there is an understanding between them i)re- liniinary to starting nu)st of these distiUeries. I do not recol](>ct par- ticnlar instances in which I have heard that. 1 think I havi^ heard some (dliers i»csides w lial Ah'. ( Ihapman told me in which distilleries were )iiil in ad nal ojicral ion. THE SIXTH DISTRICT OF NORTH CAROLINA. 445 Q. ]\Ir. Cniapiuaii was a store keei)er, Avas lie not? — A. I do iiottliink lie ever jiot an assi<;imieiit, and lie told me lie conld not get an ai^- .signinentbecanse lie would not agree to divide his ])ay. Q. He was a storekeeper ? — A. lie was eoininissioned a storekeeper and filed his bond. Q. Did lie file his bond ? — A. 1 think he so stated. It is my impres- sion he stateicion. The Chaiemax. May be they were not sworn at all, but taken in Mr. Clarke's way as a mere matter of form. Mr. Pool. A great many might be, but we are oidy speaking of what a])pears on investigation here. The WiTNi^ss. As to Mr. Powell there is another matter of com[»laint, and that is that he is incompetent; that he could not kee[> his accounts as a storekeeper, and has to get somebody else to make them up for him. Q. Did yon ever see any of Mr. Powell's writing? — A. I never did. I will tell you one reason why I say what I did. I heard Mr. Bristol say casually — that is, I heai'd the remark made generally — 1 heard Mr. Bris- tol say that he had made out all these accounts; that Mr. Powell could not make them out, and couhl only keep memoranda. Q. Is Mr. Bristol a man of good cliara(;ter? — A. Yes, sir. (^. He had been a stoiekeeper ? — A. He is not now. Q. He ha«l been ? — A. I think he has been, but he is not a storekeeper now. i^. Yon do not think" that he is a man that would swear falsely!' — A. II(; was a storekee|»er several years ago, at the tinm when 1 diromise made. Two of the York boys had THE SIXTH DISTRICT OF NORTH CAROLINA. 447 been indicted for illicit distilling'; and tlie Yorks did not insist njion llicir ])r<)SCcntion, and the goNcinment did not insist npon theirs. Q. Mr. (Jillesi)ie was indicted for assault and trespass ? — A, Yes, sir. Q. And they were indicted for viohdion of the revenue lawsi? — A. Yes, sir. (}. And all went oft' together? — A. 1 suppose their indictment was for distilling whisky. The indic-tineut Gillespie had biought against York for Lis transactions in brandy 1 did not think was a just one — at best it was a teclinical violation of the law. The Yorks were igno- rant people. As well as I recollect, there was some paper they had to sign — the teclinical name I do not recollect — in order to start to distill brandy. Jt was agreed that the brandy should be stored in his house. Instead of storing it in his house — he did not know^ what he had signed — he had a shed built in a fence corner iu w hich he put the brandy, and he was indicted for not putting the brandy where h(» had agreed to store it — iu his own house. Q. Y"ou said there was some prejudice against the revenue officers because of their earnestness in party nuitters. Of course you mean to confine the prejudice from that source to the Democratic party? — A. I stated there was some prejudice on that account, more than would have been otherwise. (^). That prejudice would not be among Eepublicans? — A. Xot as a general rule. I suppose there may have been some civil-reform men among them in North Carolina. Q, The substance of all this about collusion between storekeepers and distillers is that it is corrupting the communities? — A. Yes, sir. I might have stated as a reason for that opinion another opinion that exists, and that is that in some sections the storekeepers are in the habit of turning over their keys to distillers. Q. In the habit of doing so? — A. Yes, sir. I heard just a rumor of this sort when down in Gaston last fall. It was talked a good deal around as a rumor that a goodly number of the storekeepers' keys in Gaston County had been sent down by the distillers to a locksmith by the name of Kuester, in Charlotte, and he had made duplicates, whicli implied that the storekeepers had handed over the keys to the distillers. Q. How long ago was that'? — A. When holding court iu Gaston County last fall I heard it talked about. Q. Was that ever reported to the collector's office"? — A. I do not know\ It was not my business to report it. I just heard that conver sation among the gentlemen about the hotel. Q. You just heard that as a runu)r '? — A. Y"es, sir. Q. There was no particular distiller's name mentioned ? — A. If there was I would not have known him. It was in a part of country I was not well acquainted with. Q. Do you know whether the nnitterwas ever investigated ? — A. No, sir. I know nothing except that the matter was mentioned several times about the hotel. Q. Did you hear the name of the locksmith ? — A. Mr. Kuester. He is a locksnnth in Charlotte who had a great deal of ingenuity, as those know who have had him to supply trunk keys. Q. That would be a very grave charge, and if generally circulated it would be thought that there would be some proceedings by the United States commissioner about it ? — A. I cannot say that a majority of the people of Gaston County said it. My intercourse was with a very limited number while I held court. I merely mentioned that to show 448 COLLECTION OF INTERNAL REVENUE IN Avliat the differeut circumstances were that had uiiuh^. this impression upon me, because you asked me for my individual impressions. Q. Do you recollect any name of any gentleman of character who made that charge about Mr. Kuester's having had the keys sent to liiui^? — A. Yes, sir. I recollect one man of decided cliaracter who men- tioned it. Q. Did he mention it of his own knowledge, or of having heard it himself? — A. He just stated it; whether he said he was informed of it or whether he said it was positively so, as a gentleman ordinarily men- tions a matter that is true; at this length of time I cannot say whether he had any qualitication — as I am reliably informed or I know the gen- tleman's statement was that. By the Chairman : Q. I think you told me, judge, that Kuester, the locksmith, had told you so liimself ? — A. It may have been that way. I think probably I iiad forgotten a conversation just after Gaston court, in which I men- tioned it. to Governor Yance, and I may have said that Kuester told me — the precise language I cannot recollect. By Mr. Pool : Q. Who was the gentleman who informed you? — A. The Hon. David Jenkins, of Gaston. Q. Could you name another gentlenmn that you now recall ? — A. I heard the matter talked of among other gentlemen, but cannot posi- tively recollect the name of another. I would not state positively an- other name. Q. Do you recollect that David A. Jenkins was an applicant for Dr. ]\Iott's i)lace at the time 1 — A. I do not know whether he had made any api)lication then ; subsequently, I think, he was. Q. Was he being urged actively b^^ his political friends for the place? — A. I so understood after that time ; yes, sir. Q. A charge of that sort, if substantiated at all, would be very apt to cause the removal of the collector? — A. I should think it would; it would show a great want of diligence on his part. Q. Another matter which you were called upon to testify about, and which had been gone over with before, was in regard to Mr. Davis go- ing through and executing warrants in the worse parts even of the dis- tri(;t witliout being interfered with. What Mr. Davis was that ? — A. T. K. ]>avis. Q. Who was a witness here ? The Chaiiiman. Yes, sir. The Witness. I think 1 heard he was examined here. ]5y Mr. Pool : Q, Air. Davis stated all about that himself here. He said he had to treat those jx'ople very (•arefully, and act with moderation. — A. Talking from the stanit with him. (f. Was it in ans of whisky, at !)(> cents a gallon, -ST.L'O, making ><1 1. L'O; product, eight gallons (jf whisky, $1.25 THE SIXTH DISTRICT OF NORTH CAROLINA. 451 a gallon, $10; that makes a clear loss of $1.20? — A. Yes, sir; that seems to be a correct calculation. ♦ Q. Suppose you put four bushels of corn as makinjf a i)ro(luct of ten ji'allons of whisky, at t\so and one-half gallons to the bushel, that would be four bushels of corn, $4; tax on ten gallons, $0, which makes $1.'5; ten gallons of whisky, at $1.25 a gallon, $12.50; which makes a clear loss on the product of 50 cents f — A. It seems so. Q. Suppose you put corn at 75 cents a bushel, that would be four bushels of corn, $3; tax on eight gallons whisky, $7.20, which makes $10.20; and sold at $1.25 a gallon, would make $10; so that there would be a clear loss of 20 cents t — A. I believe the calculation is cor- rect. Q. And then, if you give the outside limit and say the product is ten gallons, there would be only a gain of 50 cents ;_is that the way you make it °? — A. You do not make any allowance in there for the wages of the distillers and the wear and tear of machinery. Q. And the firewood, sending to mill, loss and wear and tear of the fixtures, so that when corn is seventy- five cents or a dollar a bushel, there is obliged to be a loss, or at least an inconsiderable profit, unless there is something collusive going on t — A. It would seem so from that calculation. By Mr. Pool : Q. Suppose he were to get one-half of the storekeepers' pay, say, thirty dollars or fifty dollars a month from the storekeepers' pay, then the distillers would only make $1 or $1.50 more a day f — A. You desire me to state. It is ]»erhaps due that I should state how these things occur. I said I had not nuide these figures as to the division of stove- keepers paying $1.50 a day ; that would seem to cover this loss in one case and fifty cents in the other, and more than cover the loss of the twenty cents in the last calculation. The impression of the way in which this is operated is, that they divided the pay, getting one-half or two- thirds of it, and then in a great number of instances they have the key, and after running oft" two gallons into the government cistern, they can run oft" for the distiller's use a quantity of ''pot-tail" — a gallon and a half more into some other barrel — the character of whisky they get by running close ; and if they can dispose of that in some way without paying taxes upon it, they can make a profit. Q. Do you think that would he a safe thing for a man to undertake with agents traveling around through the district inspecting, and liable- to come upon him at any moment? — A. I don't know how safe it would be ; I don't know many agents are riding around. Q. It has been in evidence that there were seven or eight of them in. the district last year. Did not these distillers have a large amount of stock, hogs, &c. f — A. I think I heard some of them kept a good many hogs. Q. Was there any distilleries where they did not keep hogs ? — A. I do not know, sir. Q. Is not the main profit in a distillery in the stock raised at it f — A. I do not know anything about that ; my impression is some profit is derived in that way. My father had a distillery running on his place a few months in the year when I was a boy, and I think his idea was that a part of his compensation was from fattening his hogs. Q. In point of fact, is it not the general impression among distillers that their profit lies in the nund)er that they are enabled to keep ? — A. I do not know what their calculation was. 452 COLLECTION OF INTERNAL REVENUE IN Q. Do you ineau that the general price of corn in that country is a (Icniar a bushel ? — A. It is where I live this year; it is not every year. Q. I mean taking- one year with another? — A. Xo, sir ; taking one year with another it ranges from fifty cents to a dollar. Q. Would the average price generally exceed sixty cents? — A. I do not know that I could say that without making a calculation; it ranges from fifty cents to a dollar. Q. If when a distiller has a lot of stock ou hand dependent on his distillery, and the price of corn goes up, could he well, without loss, break up and quit ; would not his stock almost compel him to keep np! — A. I do not know; that would be a matter of calculation whether the benefit to his stock would compensate for the loss on his whisky. Q. You have never heard of them bringing stock into the estimate raised by these distillers? — A. I have never made any figures myself. Governor Vance has made these figures. Q. And left the stock out, I observe ; was not liog raising an excel- lent business in your section of the country ? — A. ]S^ot generally. Q. Was there not money in raising hogs there ? — A. I only state my individual experience. I have not considered it profitable the last few years, and have stopped, and buy my bacon. Most farmers raise their own pork, and a great many raise to sell. Q. Is it not a part of the profits of the farmers all through that sec- tion of the country? — A. Some of it is, but a good many do fiot think it profitable, and prefer to sell their gram rather than to put it in hogs. Q. Was it not important for the farmer to have hogs about his ])liHe? — A. Nearly all do raise their own pork at least, but all do not raise pork for market; a good many do. Dr. MoTT. Would it not be a hea]) better to have stills so as to feed slop instead of solid corn to the stock ? — A. I suppose if they had a still it would be a mistake to feed corn to hogs or stock, and that the distilleries nnder the circumstances could better afford to raise stock than the farmer. I only state my experience when a farmer as to the profit derived from it. M. L. McCoRKLE sworn and examined for the government. By the Chairman : Question. Where do you live ? — Answer. Catawba County, North Carolina. Q. What is your profession ? — A. A lawyer. Q. Have you a pretty fair knowledge, from being situated about the center of the district, of the o])erations of the internal-revenue laws in that counti-y ? — A. My knowledge is not so extensive probably as some, as my practice in the l-'ederal courts has not been very large, especially in rcviiiuic cases. My knowledge is mostly confined to what I know in my <)\\ n county. I haye some knowledge, of course, of the district and counties around, but not as extensively as others. (^. J)('S('ril>e, if you ])Iease, the o])cration of tlie internal-revenue laws, and the manner of executing them in your county, and what the com- plaint :i!irotested that they had paid everything. Gillespie showed his execution. He said there must be a mistake, and it must Int corrected; and, as he said, Gillespie then started up to the stable for the purpose of lev3'ing on some property, a horse, or something of the kind. A rather simple fellow came out from the stable to split some wood. Gil- lespie halted him, but the fellow did not pay much attention to him, and Gillespie shot him in the arm or leg' — at any rate, wounded him. Gilles- X)ie was indicted for it in our courts, antf he also indicted (^line for re- sisting the oflicer. I think Gillespie submitted, under an agreement, that judgment was to be suspended and the prosecution stopped at States- ville, and all was amicably settled. Q. Walker said that Cline told this half-witted fellow to attack Gil- lespie? — A. I think Walker is mistaken. Cline was a man of good character. I have no idea he would do that; at least he told me he did not. Q. There are not many distilleries in your county '? — A. Not many. Q. You say you saw no danger at any time to a revenue ofihcer in your county ? — A. Ko, sir. Q. Of course a well-dressed stranger could ride through without any danger whatever f — A. Oh, yes. Q. Has there been anything of this described by other witnesses of buying- up our young men by offices, trying to induce them to change their i^olitics, in your county ? — A. I do not know whether there was any- thing' of the kind or not. I know of some young men. who were Demo- crats when they went into the revenue service, who seemed to change. I do not know Avhat intlaence was brought to bear upon them or any- thing of that kind. Cross-examination by Mr. Pool : Q. You live in Catawba County ? — A. Yes, sir. Q. That is situated on the railroad ? — A. Yes, sir ; Western Xorth Carolina llailroad. (^. You have never had much illicit distilling in that county? — A. Very little. There was, about 1878, some indictments, but the amnesty was granted, and I think there has been no illicit distilling in the county since — very little, if any. Q. Your county is in the mountain region of country ? — A. No, sir. Q. DUX you not hear of some resistance to the law in the upper sec- tion of your county '! — A. I cannot call any to mind Just now. Q. Along on the edge of the South Mountains ? — A. That is not in Catawba. I have heard of some in the South Mountains, but know so little about it that my testimony is not W(jrth much. 1 think there was none in Catawba tlr.it I Icnow of. Q. How many distiHeries Iia\"e you in your county ? — A. Some six or eight. (}. Do ,\()ii l. You say some young men in your county have become revenue olli- cers and changed their ])olitics? — A. Yes, sir. (^. How jnany ? — A. 1 think that every man that goes into it changes. Then* was a man l)y the name of I fugh Pence; lie was a J)emocrat; I tliink he was first appointed niai'shal, and then revenue otficer; and 1 uiideistand Mamud ('line used to be a strong Democrat. Now, I under- stand, he is a ifepiiblican. I thiidc they generally lean that way when they get in. (}. Are tliev no! yoiiiig men o I" good characlei' ? — A. Oh, yes; they were and aie now. (}. Are yon (jiiite snre that they were not leaning that way when they WJ'iit in. and that was the eanse (d' their ap|M»inl nient :' — A. Veiy likely they leant (hat waN' in ta-der to get in. THE SIXTH DISTRICT OF NORTH CAROLINA. 457 By the Chair^ian : Q. In order to get in the position ? — A. In order to get in the office.. By Mr. Tool : Q. You think that is corrnpting to these young men ? — A. I do not know. If it is corrupt to be a llepublican, it would be, I reckon ; if to be a Eepublican is not corru[)t, it would not be, Q. Judge Avery seemed to think that it was corrupting the youug^ men?— A. I am not here to si>eak for Judge Avery. Q. You are not able to say that you would judge it as corrupting- young men ? — A. I do not know; I could not say. Q. But these are young men of good character ? — A. I think so ; yes^ sir. Q. And have the right to be independent in their political notions"? — A. Oh, yes; of course. Q. And to avail themselves of the benefit of office if they choose to do so ? — A. I think so. Q. And that without injury to their character and without any im- moral or reproachful act on their part ? — A. They do not stand as high with the Democratic party as they did before. Q. Do not they stand higher in the Republican party ? — A. I supiwse^ they would. By the Chairman : Q. I want you to make a little calculation on the profits of distilling.. The price of corn averages about a dollar a bushel ? — A. Yes, sir. Q. The price of whisky is about $1.40 a gallon ? — A. I reckon about that price. Q. Now, take a four-bushel still and make this calculation : Four bushels of corn, we will say, will make eight gallons of whisky ; four bushels of corn at a dollar a bushel, $4 ; taxes on eight gallons of whisky, at 90 cents a gallon, 87.20; making 811.20; eight gallons of whisky at 81.40, $11.20. This precisely comes out even, does it not? — A. Yes, sir.. Q. And the distiller loses his time, his wages, and wear and tear of his fixtures, and so forth? — A. Yes, sir ; but I have omitted to state one thing. I think there was one distiller in that coiTuty who has two small stills. I am not certain how that was. I think Mr. Hewitt has two stills. I have heard so. Q. Now, taking the same still ; and say it makes ten gallons of whisky, having a superior distiller who understands his business and wlio can make a half gallon more than the other. Four bushels of corn, at $1 a bushel, $4 ; taxes on ten gallons, $0 ; making $13 ; ten gallons, at $1.40,. $14, leaving a profit of $1. — A. Yes, sir. Q. That would go to show that the larger the distillery the more profit there would be ? — A. Yes, sir ; and then the advantage of feeding stock, as you know. That is the reason that a large distiller can distill at a smaller profit on the gallon, having his great i)rofit in raising hogs, than the smaller ones. Q. It is precisely the same thing — an eight-bushel still requires the same labor as a four-bushel still ? — A. Yes, sir. Q. And no more expense ? — A. That is all, I think. Q. If a man had an eight-bushel still, and divided it into two four- bushel stills, he would quit a business that was giving him a little i)rofit to establish a business that would give him none whatever? — A. Yes, sir. Q. What other inducement could he have for doing that, except he had 458 COLLECTION OF INTERNAL REVENUE IN some collusion Mitli the storekeeper, or expected to derive some benefit from liavinn- two storekeepers, instead of one ? — A. I think tliatis the way the people reason about it. Whether they reason from false premises or not I do not know of my own knowledge. H. C Owens sworn and examined for the government. By the Chairman: Question. Where do you reside now ! — Answer. In Burke County, near jNIorganton. Q. Were you at one time in the service of the internal revenue ? — A. I was employed as a distiller awhile. Q, In what distillery ? — A. James Lanier's. Q. Where is it situated ? — A. Situated about two miles from Salisbury, in Eowan County.* Q, How long were you there in Mr. Lanier's employ ? — A. I was there -a short time. I do not think more than three months at the outside. Q. How did you come to leave? — A. I do not know particularly how it was. He either turned me oif, or I quit myself. Q. What was the disagreement between yourself and Mr. Lanier? — He wanted me to distill on Sunday, and I refused to do it. Q. Did his distillery run on Sunday ? — A. It never did before that. Q. Did it, after you left, do so ? — A. The machinery ran that day. What they did afterwards I do not know. I will explain why he wanted me to run on Sunday, if you will let me. Q. Certainly. — A. We had been frozen up three or four days. The l^ipes had burst, and they took until Sunday morning 'to get the pipes and everything replaced. He had some beer on hand, and he said if I did not still it out it would spoil, and he wanted me to still it out. I re- fused to do so. He said he had no further use for me. He would get a man who would do it. Q. Who was the storekeeper at the time you were there? — A. Allen. Ramsay. Q. ri. A. Kamsay? — A. Yes, sir; I). A. Ramsay. Q. AVhat was the custom there about weighing out of the material, &c., anlace when he lef( llie distillery ? — A. Not to my knowledge. i}. How alionl tin^ mash, when he liad weiglie. Siegrest's. Q. Hid you make any representation at any time to Collector Mott on this sul)ject ? — A. Yes, sir. (j). When? — A. AVe talked about it several times in the last four years, during the time I was hearing these rumors, that the storekeeixas w( r(! di\'iding their wages, and 1 knew if it were going on it wouhl ul- timately drive me out of the ser\i(;t^ ; ami therefore 1 felt interested in the miilt<'r and look occasion to tallv to him and told him what 1 had heai'd a))out it. (}. I)id you tell him wliereabouts the runu)rs were located — who it was said were doing this? — A, Of course I could not do otherwise. The rumors wcic; located when; 1 was located — doing business on Hunting ('leek, in \\ ilkes County; some four or five or six distilleries near tlieic, (^. >.'anM' tli(»se distilleries, will you? — A. Nearest Wilkesborough is Porter's: then coming on down, William Sanders's; and m?xt is Ander- I THE SIXTH DISTRICT OF NORTH CAROLINA. 461 soil's ; then Bell's, J, W. Combs's, J. II. Combs's, W. H. Somers's, J. W. Lniisford's, and then Cooper's. Q. Which C()0])er ? — A. William Cooper, further down tlie creek. Q. WJiat distilleries did you intimate to liim in that conversation that thing- was done at ? — A. I do not remember that I designated or singled out any distilleries at all to him. I do not think I did ; if I did I do not reinend)or, but merely told him of the common talk, rumor, and general oi)inion, I did it for the purpose of getting him to move in the matter, and try to stop it if it did exist. I do not know of the fact that it did exist. Q. Was there any investigation made into it ? — A. Xone that I know of. Q. Xo move was made as you desired to be done? — A. Xo, sir; none. If there had been I should have known it. Q. Did you at any time have any conversation with Sanders in rela- tion to that subject? — A. No, sir. Q. With Anderson? — A. No, sir; yes; I and Anderson talked the matter over a little. I staid at Anderson's two years. Q. Did others of these distillers that you have mentioned say that they had been getting storekeepers for a dollar and a half a day; and wanted you to conform to the same thing? — A. I think not; I do not remember that any asked me to do that. No, sir; for I am very cer- tain they did not, as I would have taken it as an insult, and resented it. It never was done but once and that was in Catawba, in the last distillery where I storekept. Q. That was when they assigned von in Catawba ? — A. Yes, sir. Q. By whom?— A. By Mr. Hedrick. By Mr. Pool : Q. Were you assigned to Mr. Headrick's? — A. Yes, sir; the last of March a year ago. I staid there during the months of March, April, and part of May. They suspended in May. It was run in the young man's name, and the young- man ran the distillery. The old man, I dis- covered while I was there, got the benefit of the slop, and I think that was the remuneration he received for assisting his son in running the distillery. The young man started a little too soon, before the collector had assigned him a storekeeper; and the special force heard of it, and went and seized him. I was out of employment, and I was assigned there to start him up. I went and staid there a month, boarding with the old man. His son, the distiller, was a young man, had no family, and lived with his father. I staid there a month before I said anything about board. I could have made very easy terms about it in the begin- ning, as they were scared ; as the old man acknowledged afterwards, if I had said anything at the start. At the expiration of the first month I told him my custom was to settle my board bills at the end of the month. I wanted to know what it was, and I would settle it. He wanted to know what I had been payiug at the other distilleries. Q. That was the old man ? — A. Yes, sir ; I and his son had no talk on the subject that I remember. He then went on to state that several men had offered this, that, and the other, and he said one had offered him $70 a month. By the Chairman : Q. A storekeeper? — A. If he would employ them; some of them were storekeepers and others were not. They were applicants who had not got in. I told him in conversation that 1 was not a trading man of that kind, and I did not propose to do anything of the sort. I got a little 462 COLLECTION OF INTERNAL REVENUE IN mad. I think I said some rough things to him. I plainly told hiui to tell me what was my bill, and 1 Mould i)ay it. I saw he acted on the principle of every man doing- the best he could for himself. He said, yes. Says I, '• Let me know what it is, and 1 will hunt board somewhere else.'^ He said he could not take less than a dollar a day. In the mean time I had storekept thirty days, and that was $30 board. 1 then Avent to a neighbor's; paid $8 a month for the rest of the time I was there. Q. What did you get board there for ? — A. Eight dollars a mouth at Stine's. Q. Was the board as good as you got at the distillers'? — A. Yes, sir; very good board; that is the only time I was storekeeping when any man asked me more than the ordinary price for board. Q. You have already said, 1 believe, that none of these other dis- tillers ever said to you in conversation what they could get storekeepers for ? — A. Xever have. Q. 1)0 you know anything about the case of a distiller by the name of Sebastian, in Wilkes County ? — A. Not of my own knowledge. There is a storekeeper, I understand, by the name of Sebastian in Wilkes County, but as to the case I know nothing except what rumor says. Q. Sebastian was a storekeeper. Did you know the distiller to whom he was assigned ? — A. No, sir. Q. It is reported that Sebastian owned the distillery at which he was storekeeper, and that the distiller was a man of straw ? — A. Yes, sir. Q. How far is he located from you? — A. From where I am now living ? Q. Yes, sir. — A. I moved this spring to AVilkes ; I formerly lived in Alexander ; from where I lived it was a mile and a half. It is about twelve miles from where I am now living. Q. Do you know whether the distillery where Sebastian was store- keeper at is in operation now ? — A. I think not, sir. Q. Do you know whether Sebastian is still a storekeeper now ? — A. Yes, sir ; the report is that he is still storekeeping there. By Mr. Pool : Q. At that still ? — A. That is the report ; I do not state that for the truth ; I am only speaking rumor. Q. I understood him that the still is not running ? — A. Y'es, sir ; it is not running ; but nnder the regulations, where there are over two thousand gallons of whisky in a warehouse, the owner is entitled to a storekeeper to keep charge of it. (^. A general storekeeper ? — A. No, sir ; a storekeeper. By the Chairman : Q. Was tlu're much talk about Sebastian ? — A. I have heard but little talk altout him. I have not been in the county until since spring; just moved there, and have not heard a great deal said about him. (,). Vou just heard the report is that he was storekeei)er at his own distillery, ;nid know it only as a rumor? — A. Yes, sir; that is the report. (^. \ou «lo not know who the man was in whose name the distillery was run ? — A. 1 heaid ; I did not i)ay luucli attention and have forgotten. i). Who in that section could ])robably give information to the com- mittee about it ? — A. 1 su])i)ose you can learn it by going to the records and seeing where Sebastian Mas storekeeping ; in that May you can tind out who the distiller is. (^. I meant mIm) <-an give iiiloiiiiat ion about the fact? — A. Who can give the inronnution .' \ THE SIXTH DISTRICT OF NORTH CAROLINA. 4&3 Q. Yes, sir. — A. The first one that ever tohl me was Squire Ambrose Wiles. Q. Where does he live ; in that neighborhood ? — A. In Wilkes, on Mulberry. Q. How did you finally get out of the employ of the government ? — A. I resigned. I sent up my resignation last October, to take effect only after November. Q. Why did you resign ? — A. Simply because 1 could not get work to do. Q. Do you know any reason why you were not given work to do '? — A. I think it was in consequence of the division of wages with the dis- tillers. That is what I thouglit at the time, and think so yet. Every man could do better by the distillers than I could afford to — could pay them more for board ; that is what I thought. Q. Do you know any facts that confirm that opinion, that you base it upon? Has any man suspended to get rid of you? — A. I do not know of any suspended for the puri)ose of getting rid of me. Mr, Anderson's was the only distillery that suspended while I was store- keeper. Q. AVhat was his excuse for suspending? — A. His nephew was going out of the business. Anderson is an illiterate man, and had his nephew as partner, but his nephew was going out of the business, and he could, not run the business himself. Q. But did he start up afterwards again? — A. Yes, sir; in three months afterwards, I think. Q. Who was assigned to him as storekeeper ? — A. B. F. Tedder. Q. Were you then without employment? — ^A. No; I reckon I was out at Hedrick's at that time. Q. How long did you hold your commission and was unable to get employment? — A. I had no employment after December, 1880, except two months and a piece of the month of May. I do not recollect. Hedrick's distillery suspended in the month of May. I was there from March to May, until it suspended. That was all the work I had to do from December, 1880, until I resigned. Q. In October, 1881?— A. Yes, sir. Q. Why did you suppose that you were not given work; were there opportunities at distilleries starting where you could be assigned to? — A. Yes, sir; there were distilleries starting that I could be assigned to. There were others without work like myself, so far as that is concerned. Q. Did you apply for assignment? — A. Yes, sir; I wrote to Collector Mott six weeks before Mr. Anderson suspended. Anderson informed me very soon after the election in November that he was going to sus- pend in the latter part of December. Mr. Anderson was a very strong- Democrat, and I was as strong a Republican as he was a Democrat, and there may have gotten up a little feeling during the campaign between us. We both smothered it, and had no words. Very soon after the election he notified me he was going to suspend, and I wrote to Dr. Mott about it, informing him of the fact and asking him to fix an assign- ment for me on or about the 1st of January following. Q. Did you ever keep store for Mr. Cooper? — A. No, sir; I never kept store for him. Q. He was in Iredell County? — A. No, sir; in Wilkes, near Iredell. Q. Did you ever have any conversation with him on the subject? — A. Never. Q. How far was his distillery from the nearest point to which you were assigned? — A. About 7 or 8 miles. 46 -i COLLECTION OF INTERNAL REVENUE IN Q. Is there auy other report that you could inform the coiniuittee, or anything improper in the conduct of the officers of the internal revenue or the distillers? — A. Xot that I know of. Q. You have now given us all the information on the subject that you Lave? — A. I think so, sir. Cross-examination by Mr. Pool : Q. I have marked eight dittereut assignments you had while you were in ? — A. I do not remember the number. Q. Commencing in 1875, were you kept pretty steadily on assignment from the time you went in at Long's up to the time Anderson stopped ? — A. Yes, sir ; I do not think 1 lost more than two months' time. Q. That was about six years ? — A. Yes, sir. Q. So for about six years you were kept pretty steadily assigned nearly all the time, and did not hardly lose any time at all? — A. Yes, sir. Q. After Mr. Anderson suspended you had an assignment over to Mr. Hedrick's? — A. Yes, sir; two months and piece. Q. That was in 1881 ?— A. In 1881. Q. Youhada gap, then, from the Istof January, 1881, toMarch, 1881? — A. Yes, sir. Q. Then that was about two months you lost in \the six years? — A. Yes, sir; including that gap from the 1st of January, 1881, to March, 1881. My answer is I had been regularly employed. I do not include that time that I had lost — about two months' time only besides that. Q. That would be about four months out of the six years ? — A. I sup- pose about four months. Q. Y'ou had got an assignment of two and a half montlis at JMr. Hed- rick's ? — A. Something like that. Q. That brought you to the middle of May — along in May ? — A. I think it was about the 17th of the month they suspended. Q. From the 17th of May to the 1st of October you had no assign- ment at all ? — A. Xo, sir. Q. And you resigned ? — A. I resigned. Q. AVere there not a good many storekeepers out of employment during these six years ? — A. Yes, sir. Q. Did you know of any one more steadily on an assignment ? — A. I do not know whether I did or not. Q. Do you know any one who lost any less time than you out of the whole six years ?— I do not know of any. Q. You would not charge that you were treated unjustly in that re- spect? — A. Yes, sir ; I do that simi)ly because when I first accepted the ai)i)ointment — Dr. Mott got me appointed twice before I accepted it at all. The hrst ai>i>ointment I di(l not acce])t; I accepted the sec- ond appointment upon the condition 1 was to have regular work to . That was not the doctor's fault?— A. No, sir. (}. So for about six years did he not keep you steadily employed? — A. I tiioMght he oMght still to have done it. (}. How long d<» you t liiiilc or consider lie ought to have done it ? — A. As long as there was a dislilh'ry running in his district. (}. As soon as you did not get regular w<»rk yon thought better to re- sign and go back to your jMolession .' — .V. I had it to do. THE SIXTH DISTRICT OF NORTH CAROLINA. 465. Q. You staid at Anderson's liow long? — A. About two years. Q. Anderson never made any corrupt proposition to you? — A. No, sir. Q. You do not think Anderson suspended because you would not di- vide with him ? — A. 1 do not know about that; he never mentioned any thing of that sort to me. Q. You were not sent to Anderson's when he resumed ? — A. I was at Mr. Iledrick's. I think Mr. Anr<>wn. (}. Tltiit be was charging too much l)oard '. — A. Yes, sir. (}. Do \»>M know tbe locality wiiere ( 'ombs's and Sand<'rs\s distilleries are situated ?— A. Do 1 ! <). \i's, sir. — A. \'es, sir. THE SIXTH DISTRICT OF NORTH CAROLINA. 4G7 Q. Was there auy other i)hice there where the storekeepers could have boarded '? — A. Yes, sir. Q. And gotten good board ? — A, Gotten good board. Q. Why did the storekeeper coniphiin to you that he was charged too much at Conibs's. Why did he not go somewhere else to board ? — A. For tliis reason : this exaction has been made by the distiUers, and if thej' do not give it they would suspend. They are left the alternative either of giving or going out of emi)loyment. Q. Could Dr. Mott prevent them from suspending if they wanted to? — A. No, sir. Q. So he could have no control over it ? — A. He could have control over that matter, I supi)Ose. I reckon Dr. Mott did stop one man from suspending — J. E. Combs — in a way that satisfied the storekeeper. Q. Stopped him from suspending f — A. I reckon he did do it, from the message sent to him. Q. What was the character of the message ? — A. J. R. Henderson in- formed me that Combs wanted half his wages, and he was refusing to give it. He reported tiie ease to the office, and Dr. Mott sent word to Combs if he suspended under Henderson, unless Henderson got drunk or grossly neglected his business in some way, that his damned distil- lery might dry up, and there has been no talk of suspending since. Q. Dr. Mott could not prevent a distiller from suspending if he chose to suspend ? — A. Of course not. Q. And could not prevent him from starting again after complying with the law ? — A. No, sir. Q. So that he had no power, really, over it ? — A. No power. By the Chairman : Q. Mr. Henderson toid you that?— A. Yes, sir. Q. Mr. Summers told you he paid a dollar a day to him ? — A. To San- ders. Q. And Johnson paid two dollars a day ? — A. No, sir ; did not pay it; Johnson would not pay it, and Sanders suspended. Sanders demanded of him two dollars, and Johnson would not pay, and he suspended. Q. Did Johnson tell you anything more than that; did Sanders claim that every storekeeper had done so by him, and that he must do it? — A. Oh, yes; Sanders told him he could get them, and would not run under him unless he would give it. Q. You say when you first started out they changed the storekeei)ers every sixty days. Do you not know that was done by order of the de- partment here, for the purpose of preventing colhisiou between store- keepers and distilleries ? — A. My understanding was it was done bj' the supervisor Q. You are correct. The report is here on file, to break up this very evil. — A. To i)revent it ; it did not exist then. Q. Do you know why they ceased to change them? — A. I do not. The office of supervisor was abolished, and I think that matter was left to the collectors. Q. And they did not renew the order? — A. They did not renew the order; that was my understanding. Q. You did not know why they did not renew? — A. I did not know why. Q. I want to ask you a question, which I forgot in my first examina- tion, about the capacities of most of those distilleries where you were assigned and have spoken of here ? — A. At first most of them were six and seven bushels, but after the order was issued from the department. 468 COLLECTION OF INTERNAL REVENUE IN of the Commissioner of Internal Eevenue, that he would recognize dis- tilleries of smaller capacities, as four bushels, but he required twenty- one gallons to be made every three days ; that was the smallest, and that would a little over cover the expenses ; as soon as that order was issued most of the new ones that went into operation w^ere four-bushel distilleries. I snppose the principal reason that they prefer four-bushel distilleries, it was round nnmbers and easy to calcnlate and so ou, and some of them have been cut down from six and seven to four bushels. Q. Do you know of a man who had a seven-bushel still start with two four-bushel ones ? — A. In Wilkes there are one or two cases of that kind. Mr. William Cooper, when the order was issued from the depart- ment recognizing distilleries of small capacity of twenty-one gallons produced every three days, I think he was running one distillery at the time, and since then has started up two. Q. Of what capacity ? — A, I think four-bushel distilleries. I never store-kept for him. Q. Is it not more expensive to run two distilleries of four bushels each than one of eight ? — A, I think it is. Q. It requires two practical distillers insteatl of one ? — A . Two sets of hands. Q. And pretty much the same amount of fuel in the furnace ? — A. Very nearly ; not quite so much. Q. What was the common price of whisky at the distilleries there by the quantity ? — A. Some years more and some less ; I suppose it aver- aged about $1.4:0 per gallon ; some years down to $1.25. Q. You have heard the calculations I have made Jiere for Mr. Mc- Corkle and Judge Avery ? — A. Yes, sir; I heard the calculations. Q. Was there any money in a small distillery at the price they w^ere selling liquor, $1.40 a gallon, when corn was high, and $1.25 a gallon when it was cheap ? — A. A distiller told me this : that they made no money on their whisky ; just so they got clear of expenses over the whisky they were satisfied; that the slop would remunerate them. Q. Feediug it to hogs l — A. And to cattle. I know the last year where I store-kept the man killed 9,000 pounds of pork from a four- bushel distillery, and he calculated that this would make five or eight lumdred dollars that he got ou the slop, and consequently there is where the profit is. Q. Xot in the whisky ? — A. No. sir ; not in the whisky ; they say if they can clear exi)enses they are satisfied. Q. Who was (yombs' partner, or did he liave any '! — A. When ? Q. I have information that &Combs liad a wholesale liquor liouse. — A. Tiiat was the two Combses ; J. R. and J. W. Coiidis were brothers, and Kccsc Johnson was brotlier-iu-law of J. K. Combs; they were whoh,'sale liquor dealers, and there was another Combs a wiiole- sale licpior dealei-, rJiiiiies Combs, there in the same neighborliood. (}. This is the firm of Combs ^^ Johnson, I presume, that had a whole- sal(! li<|Uor house .' — A. Yes, sir; they were manufacturers and whole- sale li(iu. Did you hear it was seizcil and report made by J. (). A. liryan in regard to it? — A. No, sir; I knew nothing about that. By Mr. Tool: (}. Certainly there is n(j(hing inqtioper in these gentlemen being THE SIXTH DISTRICT OF NORTH CAROLINA. 469 wholesale dealers and distillers at the same time ? — A. Ko, sir ; uot that I know of. Senator McDill. I will oft'er in evidence pp. 99 to 109, inclusive, of Ex, Doc. Xo. G2, Forty-sixtli Congress, second session : Tkeastrv Dkpartmext, Office of Ixternai. Revenue, December 21, 1«76. Sir: I desire you to take immediate steps to break np the illicit biisiuess iu the pro- duction and sale of tobacco and spirits iu your district. Frauds agaiust the revenue iu North Carolina have become so open and notorious that a strong ieeliug ])revails at this office that these frauds could uot exist and continue without the aciiuiescence of local officers. I desire yon to look over your list of deputy collectors, and if you have any men ■vvho are not thoroughly honest and efficient, to dismiss them at once, and replace them by persons who are. The collectors and their deputies will be held responsible for breaking up all fraud- ulent practices iu their respective districts. Reveuue Agent Wagner will be directed to call upon you and consult with you, and, as far as may be, aid you iu breaking up these frauds. You must have deputies who will thoroughly police their divisions, and who will regularly visit tobacco factories and distilleries to see that everything is going on ac- cording to law. Blocli-adinfi mmt he stopped. There is no reason why the manufact- urers of your State shall not pay taxes on their products just- like manufacturers of other sections of the country. The taxes are paid by consumers in the end. I wish you to give this matter your active and energetic supervision. Verv respectfully, GREEN B. RAUxM, Commissioner. J. J. MOTT, Esq., Collector, StatesviUe, X. C. [Telegram.] Greensborough, N. C, Febriianj 9, 1877. Hou. Greex B. Raum, Commissioner Internal Bevenue: Sir: District Attorney Lusk writes Marshal Douglas that at a trial of a distiller before Commissioner Morris, in Henderson County, North Carolina, on the 3d, twenty armed men attacked the court, fatally wounding Harkins, de2)utj^ marshal. Other officers escaped. Distiller fatally wouuded. Am executing your orders rapidly as possible. JACOB WAGNER, I\erenne Agent. Treasury Departmext, Office of Internal Revenue, Washinr/fon, April 18, 1877. Sill: It is reported at this office that cumulative suits are being brought against Reveuue Agent Wagner and hisemployes by persons who have been arrested for illicit distillation. It is believed that these proceedings are iustitutedfor the purpose of de- terring officers from discharging their duties, and iu order to intimidate them from appearing as witnesses agaiust violators of the iuterual-reveuue laws. I desire to assure you that the whole power of the government will be invoked to Sustain and support all officers of the internal revenue iu the proper aud faithful dis- charge of their duties, aud I trust that none of the officers will be deterred from a fearless performance of official duty by threats of prosecution. I wish you to see that the proceedings against the illicit distillers aud tobacco manufacturers iu your district who have beeii complained of for violations of law are rigorously prosecuted. This office has great confidence iu Major Waguer, aud is satisfied that he has done no act iu the prosecution of his work that will uot be justified by a proper application of the rules of law. Respectfullv, GREEN B. RAUM, Commissioner. J. J. MoTf, Esq., Collector Sixth District, Statesrille, X. C. 470 COLLECTION OF INTERNAL REVENUE IN United States Internal Revenue, Greenville, S. C, April 2'.\ 1877. Sir: On the 14tli instant I was arraigned Ijefoie A. P. Eckels, justice of the jjeace of Greeusborough, N. C, to<;ether with George Cronenberger and Chas. Clark, dejiiity U. S. marshals, and John Wagner, C. A. Kile, Chas. McCorniick, James Foster, Wm. H. McCormick, and Henry Clark, men employed by nie to assist me in araidon illicit distillers in Randolph County, North Carolina, on the tilst of December last, on a warrant issued on oatli of R. H. Kennett, one of three men whom we chanced to pick up with a quantity of illicit whisky in their possession, which they were remov- ing in a wagon. The warrant charged us with " assault atd b.ittery and false im- prisonment," and after a hearing we were held in a total sum of $1,900 bail for onr appearance at Guilford County superior court, in September next. I made the bail for myself and men, while the deputy marshals provided their own. The facts constituting the basis of this action are as follows : "We were 'proceeding to the distilleries in Randolph County on the night named, when, about 10 o'clock, we met Thomas Kirkmau, R. H. Kennett, and Robert Han- nah, with a wagon containing a barrel with 94 gallons of whisky. Satisfying our- selves that it was illicit, I took charge of the team and whisky, and the marshals took the men. There were no warrants for their arrest issued until next day, when, immediately on onr return to Greensborough, they were taken before a commissioner, the nearest from the point where they were arrested. The party divided during the night, and the marshals handcuffed the prisoners to prevent their escape. The evidence on which we were bound over by the justice of the peace was that of R. H. Kennett, a full statement of which I herewith inclose. I respectfully request a careful perusal of this testimony, which shows that the parties were caught in the act. I respectfully submit that, under the statutes of the United States, marshals and their deputies have the powers of sheriffs in the States where they are appointed and act, and that as sherifi's may arrest persons found committing violations of law, even of the grade of misdemeanors, without warrants, so I hold that United States marshals may arrest persons caught conrmitting the offense these parties were engaged in. In support of this I have the opinion of Judge Hugh L. Bond, District Attorneys Lusk and Ball, and the ruling of Judges A. H. Rives and George S. Bryan. I also respectfully request that the United States district attorney for the western district of North Carolina may be instructed to defend me and all the persons above named in this suit, after having the same removed to the United States circuit court. Very respectfully, JACOB WAGNER, Revenue Agent. Hon. Green B. Raum, Comtnissioner Internal Revenue, Washinyton, D. C. United States Internal Revenue, Collector's Office, Sixth District North Carolina, Statesrille, April 23, 1377. Sir: I have the honor to acknowledge the recei]»t of your letter of the 18th instant, relative to suits which are being brought against Revenue Agent Wagner, and stating that "it is believed that these proceedings are instituted for the purpose of deterring officers from discharging their duties and to intin\idate them from ajjpearing as wit- nesses against violators of the internal-revenue laws." The opinion of the department is, to the best of my knowledge, correct, and the action of the judges of the superior courts in this State is calculated to uphold and encourage illifit distillers, itc, and to create armed resistance to the operations of my ollicers under tlu; law and your instructions. Additional encouragc-uKMit is spread broa least before the oflendors against the rev- enue laws l)y the newsi)apers in the State, extracts from which I havei the honor to inclose herewith. 'I'hi- ]>rovisious of secti<»n G4li, Revised Statutes, are declared unconstitutional, and are totally disregarded. The ofticers of internal revenue concerned in these cases, and who have licen indicted in the State courts, are rend(>r(Ml liable to arrest and im- prisonment, ivithout rccourHe, ami if fortunate enough to obtain temporary bail (accept- able to tlie prosecutors) they are ]>ut to unusual and extraordinary cxptMises, for wliieli no pidvision is madi-, and which is not leimbursed to them, thus causing heavy expenditures (for them ) IVuni their alreiidy slender ])ay. I'rider tliese eircumstaiices my til'lieei-s express a disiiielinatidu to jn'oceed with the o|ierations instituted against illegal operators unless some pi'ovision is made for their l»rotection, and i rt-connnend that a pn)vision In-, made by the departnitMit for the pay- THE SIXTH DISTRICT OF NORTH CAROLINA. 471 meut of all fees (for counsel, »fcc.) in all cases of this character which are now or may hereafter he brought before the State conrts in this district against otilicers of internal revenue. I may add that seven of my officei's are now under indictment for similar causes, and that it has been only by the greatest exertion on my part, and by the expenditure of a considerable amount for counsel fees, «&c., that they are now out of primv, on bail. I may add that, because of the ^>o^:>H/rtr feeling against the revenue, it is extremely difficult to obtain the services of any reliable attorney in our behalf. I succeeded in the cases now on hand only by payment of "retainers" of unusual amount, supple- mented with promises of further compensation. I beg your early consideration of and reply to this letter. Very respectfully, J. J. MOTT, Collector. Hon. Green B. Raum, Commissioner Internal Berenne, Wasliiinjlnn, D. C. Treasury Department, Office of Internal Revenue, Washington, June 16, 1877. Sir : For a number of years the illicit manufacture and sale of spirits and tobacco have been carried on in certain districts throughout the United Statts, in many in- stances in open defiance of the officers of internal revenue, so that the ordinary ar- rangements for the collection of internal revenue taxes have been insufficient for the suppression of these frauds. I have determined that the next fiscal year shall be sig- nalized by the suppression of these frauds, and to that end, in recommending allow- ances for collectors for the fiscal year commencing July 1, 1877, 1 have reserved a sum of money to be esx)ecially devoted to the employment of additional deputy collectors from time to time to aid the regular force in the work above alluded to. It is not proposed to keep this extra force of deputies continuously employed, but to employ them at pi'oper times to assist policing the infested portions of the district, so that the men engaged in the frauds will become satisfied that their occupation is too danger- ous to be persisted in, and that in consequence they will abandon their unlawful business. I expect collectors in the infested districts to act with great energy and determination for the suppression of these frauds, and, in t^je selection of depuiies for the work, to secure the services of men of integrity, sobriety, and courage. It is expected that the operations against those who are engaged in tiie illicit man- ufacture ami sale of spirits and tobacco shall be conducted in an orderly and legal manner, so as to challenge the respect of well-meaning people, but with a vigor, de- termination, and persistency that will convince wrong-doers that it is the intention of the government to break up their unlawful ojjerations. It is well known that numerous persons are now engaged in the illicit manufacture and sale of spirits in your district, and I desire that you shall take immediate steps to suppress the same with a strong hand, and for that purpose you will please forward your application for allowance for deputy collectors for your district, stating the num- ber of deputies required, the period of time for which their services will be needed, and the amount of pay, including horse-hire and traveling expenses, that shall be allowed them. It is important that suitable arrangements shall be made for co- operation by the United States marshal for your district, so that the arrest of distil- lers can be effected at the time of the seizure of the stills. Prompt action is desired in this matter. Please acknowledge the receipt of this letter. Very respectfully, GREEN B. RAUM, Commissioner. John J. Mott, Esq., Collector Sixth District, Sfatesville, X. C. United States Internal Revenue, Collector's Office, Sixth District North Carolina, Statescille, October 8, 1877. Sir: I have the honor to submit the following report relative to a raid recently made in Burke County, in my district : Deputy Collector A. B. Gillespie, accompanied by Deputy Marshals Patterson and McDowell and two assistants (live in all), started from Morgautou on the evening 472 COLLECTION OF INTERNAL REVENUE IN of October 1, inteudiug to make a seizure of stills autl whisky, illicit, reported to Deputy Gillespie. The names of the distillers, as reported, were James York, Nicholas York, and Harvey York; aud the location iu South Mountains, about lf3 miles from Morganton. Arriving early on October 2 a. m., they found three distilleries operating illicitly; at one of them the still had been removed recently (tire was still under the furnace). The two stills, with caps aud worms complete, were brought to Morganton. .Search in the vicinity discovered about 60 gallons of whisky and two barrels of brandy, all unstamped. The whisky was destroyed for want of transportation ; but the brandy was safely brought to Morganton. Two persons were found in the still-house, situated on James York's plantation, aud supposed to belong to Nicholas York. The persons were arrested aud brought to Mor- ganton aud contined in jail to await action by the United States commissioner. Their names are Nicholas York and Alfred Hoyle. They were working iu the still-house when arrested. ^Vbile searching in the vicinity fire was suddenly opeued upon the United States ofiBcers by persons concealed in the bushes and behind trees and rocks. The number of assailants is estimated to be twelve. They were all armed with long ritles. The ofScers retreated with their prisoners and cajitured property down the mountain, being met at every turn of the narrt>\v and rough road by the attacking party, who, out of sight and range of the officers' pistols, kept up a persistent tire. From about 8 a. m. October 2 until 12 m. the tiring upon the ofticers was kept up. All of the officers except one were hit with the bullets, and Deputy Collector Gil- lespie was seriously wounded. A bullet entered his right shoulder, penetrating back- ward aud toward his left side as far as the backbone. He is now at Morganton, under medical treatment. The Ijall has not been extracted. The horse ridden by McDowell, a tine animal, and lielongiug to him, was killed early in the day, and the one belonging to Pattersou was severely wounded. The party arrived at Morganton on their return about 7 p. m. Octol)er 2. The locality raided by Mr. Gillespie and his compauious is notoriously a dangerous •ne, anil the inhabitants are unscrupulous desperadoes; all interested in illicit dis- tilling. They band together, as in this case, for mutual protection against and resist- ance to revenue oiiicers and the laws. Previous to this occurrence United States soldiers have been shot at and wounded, aud in one instance killed. In a neighboring township these same officers, while in the performance of their duty, were, about two weeks ago, shot at from behind shelter. I would suggest that prompt and vigorous measures be at once taken to suppress illicit distilling in this section, and to bring the ottenders in this case to justice. They can be identified. Verv respectfully, J. J. MOTT, CoUcctor. Hon. Gheex B. R.^um, Commisniontr Inttrnal Eevenm, IVavltiiifitoii, D. C. United States Internal Revenue, C()LLECT<»r's Okfice, Sixth District Nohtii Carolina, atatesciUe, Decemhir 10, 1877. Sir: I have the honor to state that, in my opinion, the efficiency of my deputies (special force) will be greatly increased to have them properly armed. I therefore make rc(iiiisitiou for ten repeating carbines and a sutficient quantity of cartridgi's, and r((|n(st tiiat they may be forwarded to this office as soon as possible. ^'ery respectfully, J. J. MOTT, Collector. Hon. G. B. Rai;m, Commixxioucr /iittyiial R(rr)nic, U'dxhiiifiloi), 1). C. Trkasi'rv Department, OiEicE Internal Revenue, Jhcemlwr 22, 1877. •Sll! : I desire Id cull \ our al lent inn to t he mi)inrt ,nicc of vigorous action on the part of all re \ ell lie oiiicers fur I lie sniipressioii of illicit dist illal ion. I ;ini uialilied l>v the zeal lieretofore nninifested hy you in this direction aud with llie nsiilts attained in vuni district. The season has arrived when illicit distillers are THE SIXIH DISTRICT OF NORTH CAROLINA. 473 usually the most active. I trust that you will take such prompt and active measures to break up this illicit traffic as will give theoffeuders to understaud tliat the laws for the suppressiou of illicit distillation are to be euforctsd and all violators thereof brought to punishment. I am satisfied that such action will have the effect to deter many old oftenders from engagiug in their former unlawful business, and thus save the govern- ment much trouble and expense. Your allowance for sis special deputy collectors coutiuues to the 15th proximo. I trust that you will use them to the best advantage during the intervening time, and that at the expiration of that jieriod you will hav(5 accomplished a good deal. You have also a considerable amount to your credit from the allowance made you for the employment of guides, &.c. With this force I think you should be able to break up illicit distillation in your district. No definite reports as to the result of your operations for the suppression of illicit distillation have l)een received for some time, and I am una1)le to judge wliat you have accomplished l>y the aid of your special deputies. I have to re([uest that you will report somewhat in detail to' this office at an early day what you have already done and are now doing for the suppressiou of the frauds above referred to, stating also the general condition of your district in respect to illicit distillation. Respectfullv, GREEN B. RAUM, Commissioner. .1. J. MOTT, Esq., Collector Internal EeveHKC, StalesriUe, N. C. United States Internal Revenue, Collector's Office, Sixth District North Carolina, Staiesville, December '.W, 1877. Sir : I have the honor to give you the following information in regard to the recent cases of the indictment of my ofidcers in Burke County court, this State. The defendants, six in nuniber, were indicted for assault and battery and false im- prisonment in four cases, by one Oates, workman, and York. The bill of indictment was found at fall term 1877, and on the grand jury were near relations of those on whom the offense is alleged to have l)een committed. The scene of the offense is South Mountains, in Burke County, North Carolina, where there has heretofore been much armed resistance to the enforcement of the revenue laws, and where even United States soldiers have more than once been fired upon. On the 2d of October, 1877, the defendants went to the locality for the purpose of suppressing the unlawful distillation of spirits. At a certain notorious point they found 25 hogsheads of beer, a hogshead of siuglings, and a still in full operation. They also found a brandy still in operation. Both still-houses were pierced for the use of guns in their defense, and guns loaded were found in both. At a house near the distillery they arrested a person whom they suspected of being connected with the violations of the law, and two others in the still-houses. While employed in the discharge of their duties, in destroying the beer and removing the stills, the defendants were fired on from the bushes with rifies, the persons shooting- being from one to two hundred yards off. As mauy as four shots were tired before the fire was returned. The persons thus concealed then continued to fire until as many as forty shots were fired. The defendants were armed with small (3 and 4 inch barrel) revolvers. All of the defendants were struck, one (Gillespie) was severely wouuded in the shoulder, one received a bullet in his hat, and one horse was killed. The firing continued for four hours at intervals, the defendants being followed from the still-houses until they were out of the suspected and rebellious vicinity. They were only saved by keeping the prisoners in a line close to themselves. None of the persons who were firing on the defendants were struck. The indict- ment is procured in the State coui-t against these officers for the purpose of compelling the officers of the government to desist in the prosecution of the ofienders. Of course there is not the "ghost of a chance" for the defendants in the State courts ; therefore .steps were taken to remove the cases. It is positively certain that a regular and organized system of illicit distillation is carried on in the vicinity referi'ed to above, and for its protection regular picket lines are kept up, and no revenue officer can go into the vicinity without certain and de- termined attacks being made on his life. The court at Morganton (State court) refused to allow a transfer of these cases, which caused me much trouble, as I deter mined to use every legitimate means to remove them, and had to resort to habeas 474 COLLECTION OF INTERNAL REVENUE IN corpus, which necessitated the employing of additional counsel here before the L'^nited States court. Very respectfully, J. J. MOTT, Collector. Hon. G. B. Raum, Commissioner Internal lievenne, Washington. I). C. Treasury Department, Office Internal Revenue, April 9, 1878. Sir : Hon. W. M. Robbius has referred to this office the petition of William A. Mc- Glainey and tifteen others, addressed to the President, asking that T. Marshal McNeill, of Wilkes County, for whom it is alleged a warrant has been issued upon a charge of illicit distilling, be pardoned. It is asserted that Mr. McNeill has abandoned his vio- lations of law, and is now engaged with McNeill, Hays & Co., as a lawful distiller. If this is true, I would be willing to dispose of the charge against him by suspending the judgment of the court upon his pleading guilty to the charge, thus placing him upon his good behavior. You will please consult with the district attorney upon this subject, and take such action in the matter as will be just and proper under the circumstances. Very respectfully, GREEN B. RAUM, Commissioner. J. J. Mott, Esq., Collector, Statesville, X. C. Treasury Department, Office of Internal Revenue. TVashinaton, March 13, 1878. Sir: I desire that you would, as early as practicable, inform this office of the con- dition of your district in regard to illicit distillation, and what further means, if any, are necessary to effectually suppress these frauds and secure the arrest and punish- ment of the violators of the law in this respect. I am aware that, during the past winter, yon have accomplished much, but to secure the greatest benelit to the government In this work, and to render the results permanent, there should be no relaxation of ertbrt while you have reason to believe that a still is being illicitly operated in your district. With a view to continuing oi)erations in this direction, I have to request that you will, in your rei)ort of the condition of your district, embrace a statement of the employment of special deputy collectors. Respectfully, .J. Mott, Esc]., Collector Internal Revenue, Statesville, X. C. GREEN B. RAUM, Commissioner. |Tclc;:raTn.l Treasui{v Department, Office of Internal Revenue, May 2-2, 1878. If you ficciii it advisiibji' to have assistant counsel for the defense of Gillespie, the I'atti'rsoiis, and McDowells, consult with the district attorney and employ one or more prornineMt lawyers. 'I'he Attorney-CJeneral is absent from the city, but 1 will under- fake to si'c tli;it llie assistant couiisc] arr jiroperly rcmuncratfil for their services. It is fhf dfftriiiiiialioii of the jiovcnmiciit to jnotcct its oriiccis with every means at its hamis against nnjust prosecution trumi)ed up for the piuitosc (d' deterring them from eiilbieinir the Laws. (;reen b. K'AUM, Commissioner. .1. .f, MnlT, Collri l(ir, StaleHvilh, S. C. THE SIXTH DISTRICT OF NORTH CAROLINA. 475 United States Ixteunal Rkvenie, CoLLECTOii's Office, Sixth District North Carolina, Statescilh; June 17, 187R. Sir : I have the honor to loiiort that on the 11th instant. Special Deputy Lilliiij^toii, witli two otliors (one a j!,nide), were in a part of the Brushy Mountains, iu this district, about :!() miles distant from this office, searching for illicit distilleries, when, without the slightest warning, they were tired upon by persons concealed. The number of the assailants being unknown, and the nature of the locality being such as to preclude till possibility of detecting or successfully resisting them with the small force at his command, Deputy Llllington retreated to the main road, which was about a mile distant. During their retreat the tiring was continued; and, although the bullets cut the trees and struck in the ground around the deputies, ueitherof them was injured. This assault was committed in the neighborhood where, on March 19, 1878, a dis- tillery belonging to Berry Estep and J. F. Parlier was cut up by my deputies (report on Form 117, rendered March 10, 1878), and L. F. Parlier (son of J. F.) is reported as being connected with the gang who were concerned in the shooting. Evidence is being worked up to connect him therewith. In this connection, and to demonstrate in some degree tlie lawlessness which exists in certain portions of this district, as in connection with illicit distilleries, I have to inform you that I am, this day, in receipt of a report, l»eariug date June 15, from Deputy Collector Bryan, at Morgauton, who states as follows : "Old man Ramsey, of South Mountains, was here yesterday, and a fellow from Brin- dletowu knocked him down with a rock and then stamped him in the face. " These fellows accuse Ramsey of reporting them. They killed his horse some weeks past; Ramsey then borrowed a mule from Amos Huft'man to tend his crop, and last Tuesday night they shot the mule dead iu Ramsey's stable ; and my opinion is they will kill Ramsey if he remains in that section long. * * * "There are a good many illicit distilleries in operation iu these mountains, but everybody is afraid to tell on these fellows for fear they get the fate of Ramsey. I am trying to 'spot' them, and if I cau 'get the dots on them' I will report the same at once. * * * "The very devil is in these outlaws, and they will be very liard to tame." I am doing my best to exterminate this evil in my district, but, to quote the words of Deputy Bryan, "the very devil is iu them," &c. When a law-abiding citizen makes any report which leads to the detection or arrest of any of these "outlaws," if it becomes known, he is persecuted in every imaginable way, as in the case of "Ramsey." Such things have been happening here all along, but I have refrained from reporting all of them, because I disliked to advertise the community so much, and hoped that such conduct would cease. I shall give it all in future to you and to such of the press of the State as will pub- lish it, particularly as there is no abatement of this malicious enmity toward ofticers of the revenue on the part of many of tliese people and their friends, and also because the Congress of the United States seems about to be iutluenced by them to refuse to officers of the revenue the trial of their causes iu the United States courts, when it is well known that these officers cannot get justice iu the State courts, where the officers of the State courts vie with each oiher iu their persecutions of revenue meu, and make such persecutions a means of keeping themselves iu office and exalting them- selves before the people. Very respectfi:Ilv, J. J. MOTT, Collector. Hon. G. B. Raum, Commissioner Internal Eeveiiue, Washington, D. C. United States Internal Renenue, Collector's Office, Sixth District North Carolina, Statesville, July 5, 1878. Sir : I have the honor to report that during May and June, 1878, the force of special deputies has been actively engaged in the suppression of illicit distillation of spirits in this district; mainly operating in the counties of Yadkin, Wilkes, Ui)per Iredell, Alexander, Catawba, Gaston, McDowell, Rutherford, Polk, Henderson, and Transyl- vania. During May they traveled about 650 miles, and during June COO miles, visiting and destroying 69 illicit distilleries. There were destroyed during these mouths 36 copper stills and fixtures; 704 stands 476 COLLECTION OF INTERNAL REVENUE IN •of beer or iiiasb, averagiug 100 gallons each, being 70,400 gallons beer or mash; 1515 empty stands ; 40 bushels meal or malt ; 1,OHO gallons singlings ; b5 gallons whisky. More stills would have been destroyed had it not been for the habit which the illicit distillers, in their fear of surprises by the deputies, have been practicing, of taking out their stills during the time used in mashing and fermenting, ancrsons in yoiir district for violations of internal-revenue law in connection with distilled s))irits^ I have to inform you that it is not the intention of the government to relax its efforts in i)r()secuting its work for the sujipression of the i)ro(luction of and tniftic in illicit sjiirits in your district, and I desire that you now iiress youi- opeiatiims with increased vigor, and that you reorganize your force of bjK'cial deputy collectors and thoroughly police your whole district. I tliink your force is ami»le for this i>ur})ose ; if, however, you need any further nieaus advise tliis office immediately. It is hoped and ex)tected that the indulgence granted by the government to illicit distillers for i>ast otlenses will have a salutary etiect in your district, but do not let the for'tearance of the government to luosccute otfenders for the past be misunderstood. Hereafter, jiersons who engage in illicit dislilling will be jirosecuted to the extent of tlie law. I liave directed Revenue Agent ('h:ii»maii 1o confer and co-operati^ with you. and friist that you will at once enter with renewed vigor, if jios-sible, upon the work of ^•ntirely eradicating liU/\ X. ('. United Statks Intkrnal Rkyknti:, CoLLECTou's Office, Sixth Distkict Noirm Carolina, Statesi-'dle, Janitar;/ 31, 1^79. SiK : I have the honoi" to call your attention to the necessity for pronijit action in the matter of the retention of the force of special deputies in my district, and the con- tinuance of the allowance for the " detection and prevention of frauds, &c." The operations of the special deputies duringthe past year, aided by the "allowance"' heretofore made, have resulted, as may be seen by the reports rendered, from time to time, to your ofilice, in suppressing, to a great extent, illicit distillation in this district, and in a great inci-ease in the number of legally operated distilleries. On January 1, 1676, there were, on the records in this district, 22 grain distilleries in operation, and 26 grain distilleries under suspension and in charge of general store- keepers, being a total of 48. To-day these same records show 96 distilleries in opera- tion, and 18 in charge of general storekeepers, which, with 39 whose papers are ready, and who are awaiting qualification of storekeepers for assignment, make a total of 155 legal grain distilleries in the district ; an increase of 107 distilleries in the past year. This increase has been mainly since September, 1878, and, I think, most con- clusively demonstrates the value and etfectual working of the special force in sup- pressing the illicit operations ; and, by constant and continual supervision, forcing them to run regularly, or not at all. . The partial withdrawal of the force, on January 1, made necessary by the want of funds, has become, to some extent, known, notwithstanding my ettbrts to " keep up appearances," and the bad effects are already felt. Those who have been "kept un- der " are already growing bolder and defiant ; and I am within the past two weeks in receipt of advices from sections of the district, from which I Avould conclude that if we once " let up" on these violators of the law, their lawlessness will be renewed, probably with as much force and vigor as ever ; though they will not receive the ai(I and comfort, in the shape of public opinion, that has been artbrded them heretofore. There is a strong feeling now, on the part of the better classes of society, in favor of enforcing the revenue laws ; and a large number of this class are now engaged in legal distillatiou, and prefer to be as long as the law is enforced, and gives theui a fair chance in the trade. If this chance is not aftbrded, they cannot, of course, compete with the illicit deal- ers, and will naturally fall away again into the old channels; for they »'(7/ make whisky one way or the other. We will lose, in a short time, nearly all tlie good effect of what has been done in the last twelve or fifteen months, if this force of deputies is withdrawn. I would earnestly recommenon two men who are being pursued and who may be ca]»tur. C. Aiijoilllinl Id liicci in MnrL:;illt(ill, X. ("., oil No\('1Ii1kM' 13, 1S82. THE SIXTH DISTRICT OF NORTH CAROLINA. 479 Note. — This statement should follow exhibit 8 on page 5li. No. G, 715.J Treasury Department, Fifth Auditor's Office, May 12, 1873. I hereby certify that I liave examined and adjusted an account be- tween the United States and J. J. Mott, collector for the sixth district of Korth Carolina, from October 1, 1872, to December 31, 1872, for sal- ary, commissions, and expenses, and find him entitled to credit as fol- lows : By salary for said period, special allowauce dated August 16, 1872 $750 00 By amount deposited during said period $82,492 00 ]3y coniuiissions on 8 , at 3 per cent By comnnssions on $ , at I per cent By commissions on $ , at 4 per cent By commissious on $ , at i per cent By commissions on $ , at I per cent., being amount of tax-paid stamps sold under act of July 20, 1868, as per books of coupons tiled with the reven ue account for said period By special allowance for office expenses I, 325 00 By stationery and blank books By postage 33 50 B V express and depositing money 8 90 Advertising 12 0(1 2, 129 40 I also flntl him chargeable as follows for amounts received from the collector acting as disbursing agent: For salary, for commissions: Special allowance in lieu of §1,274 00 Expenses of administering office for said period as reported on Form 63, tiled herewith : Deputies, $1,295; clerks, $450; rent, $60; fuel, $12; lights, $3; advertisements, $ ; miscellaneous, $ . Total, $1,800. Balance due the collector 855 40 $2, 129 40 The said balance to be carried to the credit of the collector as dis- bursing agent on the books of the Register of the Treasury. The accounts and vouchers are herewith transmitted for the decision of the Comptroller thereon. J. H. ELA, Auditor. To the First Comptroller of the Treasury. [$855.40.] Treasury Department, Comptroller's Office, June 2, 1873. I admit and certify that eight hundred and fifty-five and -^p-,-, dollars are due and to be credited as stated in the above report under bond dated March 5, 1872. E. W. TAYLOR, ConqytroUer. To the Register of the Treasury. STATEMENT OF DIFFERENCES. Balance ])er account due collector $1, 330 40 Balance found per adj ustmeut due collector 8.55 40 Difference to collector's debit ^ 475 00 480 COLLECTION OF INTERNAL REVENUE IN Explained thus: Expense3 of office charged in account $1, ?W 00 Expenses of office, being limit of special allowance credited herein 1 , :i2') 00 475 00 Fifth Auditor's Office, Mmj 12, 1873. Examined and stated by Examiued and reported by E. C. CLAEKE. Comptroller's Office, June 2, 1873. CHAS. G. BIGGS. Note. — This statement should follow Exhibit 11 on page 51. No. 71G6.] Treasury Department, Fifth Auditor's Office, Oetoher 8, 1873. I hereby certify that I have examined and adjusted an account be- tween the United States and J. J. Mott, collector for the sixth district of North Carolina, from April 1, 1873, to June 30, 1873, for salary, com- missions, and expenses, and find him entitled to credit as follows : Bv salary for said period, special allowances Augnst 16, 1872, and Jnue 23, 1873.. -• $750 00 By amount deposited during said period $50, 049 37 By commissions on $ , at 3 per cent By commissions on $ , at 1 per cent By commissions on $ , at i per cent By commissions on $ , at \ per cent By commissions on § , at i per cent., being amount of tax-paid stamps sold under act of July 20, 1808, as per books of coupons filed with the revenue account for said period ' By special allowance for expenses of office 1,769 23 By stationery and blank books By postage '-^9 00 By express and depositing money 15 59 By advertising "9 -i> 2.t;53 07 I also find him chargeable as follows for amounts received from the collector acting as disbursing agent : l-'or salary, for commissions: Special allowance in lieu of $2. 320 00 'Expenses of administering office lor said ])eiiod as per form ()3 filed herewith : Deputies, §2,200; clerks, !|650; rent, $00 ; fuel, $ ; lights, $ ; advertisements,!-^ ; miscellaneous,!; -; total, S2,'J10. Balance due the collector 333 07 $2, 653 07 Tlic said halancc to be carried to the credit of tlie collector as dis- bursing agent on the. books of the JTegister ol' the Treasury. 'J'he iU'couiits anil vouchers arc herewith transmitted for the decision' of the ( 'oinpt rollei' tlieicoii. .1. II. ELA, Auditor. To tllO FiRS'l' (JOMI'TROLLER OF THE TREASURY. * Expenses of office are unnecessarily extravagant. the sixth district of north carolina. 481 $333.07.] Treasury Department, Comptroller's Office, November 15, 1873. I admit and certify that a balance of three hundred and thirty-three and x^ dollars is due and to be credited as stated in the above rei^ort, under bond dated March 5, 1872. WM. HEMPHILL JONES, Acting Comptroller. To tlie liEGISTER OF THE TREASURY. STATEMENT OF DIFFERENCES. Balance claimed per account due collector $1, 488 84 Balance found per adjustment due collector 333 07 Difference to collector's debit 1, 1»5 77 Explained thus : Expenses of ofiQce charged in account $2, 910 00 Expenses of office credited herein, being limit of special allowanc/e, which the collector has disregarded 1, 769 23 1, 140 77 J. J. Stt^wart's bill advertising, suspended for locality of paper and rates of advertising ; voucher returned to the collector 15 00 1, 155 77 Examined and stated by Examined and reported by ^ S. Mis. 116 31 Fifth Auditor's Office, October 8, 1873. E. 0. CLARKE. Comptroller's Office, November 15, 1873. CHAS. G. BIGGS. DOCUMENTARY EVIDENCE. Senator Vance offers in evidence tlie following reports of special agents : EXHIBITS. No. 4355. [United States Internal Eevenne Supervisor's Office, district of Virginias, Caroliiias Georgia, and Florida.] Ealeigh, May 2, 1874. Hon. P. W. Perry, Stipervisor Int. Rev.., Baleigh, N. C. : Sir : I have the honor to report, as the result of my attendance on the U. S. court at Statesville, that indictments were found against five (5) ex-gangers for fraudulent charges in their p;iy accounts. Indict- ments were also found against two tobacco manufacturers for remov- ing tobacco without payment of tax, and one for giving insufticient bond. Proceedings in rem were instituted against 3 tobacco factories and against one farm premises, used for ingress and egress to an illicit distillery. In addition to these I had bills against seven (7) individ- uals, presented for trade in illicit tobacco and spirits, and all of these failed to be returned as true bills, because the witnesses swore falsely. I also caused bills of indictment to be presented in twenty-five cases for illicit distilling, but was not able to ascertain how m^ny of these were returned as true bills. In this connection I will state that I ascertained that J. A. Clark, deputy collector and chief clerk for Collector Mott, made up all the false ganger's bills on which the indictments were found against the five gangers mentioned in this report ; that in no case where his signa- ture was attached to the jurat on ganger's bills had he actually admin- istered the oath ; that in many cases where these fraudulent ganger's bills were sustained by false and forged vouchers the vouchers were written by this Clark, and in some instunces the signatures forged by him, and that for the past year he has been one of the sureties on a distiller's bond. My proof of these facts was incontestable, and I earnestly recommended the district attorney to move for his indict- ment, but he declined. I also intended to present a bill against A. M. Rhyne, formerly store- keeper, for being interested in a distillery when assigned to the same distillery as U. S. store-keeper, but I ascertained that I should be able at next term of court to present him for illicit distillation, and concluded it was best to wait until next term and bring both charges at once. Very respectfully, your ob't serv't, A. M. CRANE, Rev. Agent. 484 collection of internal revenue in United States Internal Revenue Supervisor's Office, District of Virginias, Carolinas, Georoia, and Florida, lialeigh, Maij 2d, 1874. Hon. P. W. Perry, Supervisor Int. Rev., Raleigh, N. G. : Sir: 1 have the honor to report, as the result of my attendance upon court at Greensboro', N. C., that indictments were found in twelve (12) cases for violation of internal -re venue laws. Proceedings in rem were begun against two (2) tobacco factories and one wholesale liquor dealer's establishment. In addition to the foregoing, I was assisting in the pre- sentation of bills of indictment against some twenty (20) or twenty-five (25) persons in Randolph County, N. C, for illicit distilling. Of all the bills of indictment found at this term of court fully one-half were the result, either directly or indirectly, of my exertions. Very respectfully, A. M. CRANE, Rev. AgH, United States Internal Revenue Supera^isor's Office, District of Virginias, Carolinas, Georgia, and Florida, Raleigh, N. C, May 4, 1874. Hon. J. W. Douglass, Commissioner Int. Revenue, Washington, D. G. : Sir: I inclose herewith for your information copies of two reports of Rev. Agent A. M. Crane in relation to the transactions of the U. 8. court at Statesville and Greensboro', N. C. Very respectfully, your ob't servant, P. W. PERRY, Supervisor. T. W. B. No. 4933. United States Internal Revenue, Grenshoro\ N. G., Sept. 5^,1878. Sir: I have the lionor to report that I have for sometime past been engaged in an investigation of the acts of certain ])ersons near Morgantown, in Ctli district of N. C, among them R. A. Cobb, U. S. store-keiqier and ganger; D. C. Pearson, clerk liurke County SU])erior court; Terrill Ilndson, Hudson, -loiinson «& Co., and Huff- man & Co., dislillcis, all of whom are and have been engaged, sever- ally and in combination, to defraud the revenue m uidawfiilly removing 8i)iVit8, refilling empty stamped casks, and i-eusing si)irit stami)s with the result of seciiring what api)cars to be con(;lusvie evidence of their guilt, lieing alxiut to leave tiiis district, I have placed this evidence iu the hunds. jointly of collector J. J. Mott and revenue agent Chap- man, to be used in seizing ])roj>erty and bringing the oifenders to ]n]nisliment. Collector Mott is very indignant at the eondnct of stcn-e keei)er Cobb, THE SIXTH DISTRICT OP NORTH CAROLINA. 485 who has thus grossly betrayed his confidence, and is disposed to press the case against hini and his associates. [ trust tliat he may be in- structed to cause his immediate removal from office, and that prose- cution be instituted against him, as he has been the leading spirit iu the frauds, and that Mr. Chapman may be advised of the importance of immediate action in these cases. Very respectfully, JACOB WAGNER, Revenue Af/ent. Hon. Green B. Kaum, Commissioner Int. liev., Washington, 1>. C. United States Internal Revenue, Greensboro', N. C, Aug. 20th, 1878. Sir: In answer to your letter of the 24th instant, initialed " W. H. H." and "E. M. T.," referring to an investigation of the charges against certain officers of the 6th dist., N. C, preferred by John Carpenter, I have the honor to state that the investigation has been progressing for some time past, and that I visited John Carpenter at his house at Knob Creek last week. As speedily as possible the investigation will be completed and the report forwarded. Very respectfully, JACOB WAGNER, Revenue Agent. Hon. Green B. Raum, Commissioner. No. 8552. Treasury Department, Office of Internal Revenue, Washington, July 2P, 1879. W. H. Chapman, Esq., Revenue Agent, Statesville, N. C. Sir : Information has been received at this office that at or near the village of Dallas, Gaston Co., N. C, legal distilleries are being con- ducted on what is known as the mutual benefit plan — that is, store- keepers, in order to procure assignments, start new distilleries and keep them running, dividing their salaries with the owners of the distilleries, and that men are to be found there who have two or three distilleries running within short distances of each other on this princii»le. It is also alleged that the low price at which the spirits of such distillei-ies are sold prevents honest dealers from competing, thus raising a presump- tion of fraud on the part of both distiller and ofllcer. These allegations, if true, involve a serious abuse in the j^ublic serv- ice, and you are directed to make immediately a thoroujiU and ener- getic investigation of the whole subject and report the result to this office. Respectfully, GREEN B. RAI M, ConDuissioner. 486 COLLECTION OF INTERNAL REVENUE IN United States Internal Revenue, Collector's Office District of South Carolina, Dallas, N. C, Aug. 8th, 1879. Hon. Green B. Raum, Commissioner of Int. Revenue. Sir : I hav^e the liouor to submit the following report of my investi- gations in accordance with yonr instructions contained in office letter dated the 28th ulto., initialed "C. W. E." and "M. M. B." I reached this county (Gaston) on the 31st ult., and have traveled over the greater part of it, as well as parts of Cleveland, Lincoln, and Mecklenburg Counties, visiting distilleries, U. S. store-keepers, and gangers, and others iu pursuing the investigations I am instructed to make. To enable you more fully to understand the condition of things, it will be necessary to refer briefiy to the causes which led to the establishing of so many legal distilleries in this dist. As a means of preventing the illicit production of spirits in the collection districts of S. C. and Gth N. C, Collectors Bray ton and Mott and myself were instructed to en- courage the establishing of legal distilleries, and as the people of the districts had been encouraged by democratic politicians in their belief that the revenue laws were made in the interests of the rich man alone, and that the government meant to oppress them, the most liberal inter- pretation of the law was allowed them in the construction and running of tlieir distilleries. About four bus. per day was fixed upon as the minimum capacity upon which a distillery would be allowed to run. It was allowed by Collector Mott, and I think by Collector Bray ton, too, that the distiller, among others, might recommend a man'in good stand- ing in his community, who could give the reipiired bond, and he would recommend his appointment as store-keeper and ganger and have him assigned to his distillery. The endorsement of the api)licant by the best peo})le in his neighborhood and the bond of .$2(),00() whicli was required was tliought to be good security, though it was ai)prehended at the time that tliis privilege might be abused, but the collector concluded it was best to get them started, and correct the abuse afterwards if it did occur. The imtural advantages which tliis section of country affords, the education of the people to the business, the encouragement offered by the department, together with the vigilance of the special deputies and other revenue olTicers in breaking u}) illicit distilleries caused the es- tablishing of many legal distilleries all over tliis district, and some in S. C. Soon a stock of whisky began to accumulate on the hands of the distillers, many of whom were unable to hold and unwilling to sell at the i)ri(;es offered them by the w. 1. d's, conscipiently began to look out for other modes of making sales. They obtained retail license, and sell dire(;tly to consumers or any one else, in (luantities less than live gallons, at the same price, and sometimes k;ss than they ask for the sauMi article in stamped casks. They have undersold the wholesale nse(juently iiijnicd their business, causing considerable Jealousy on tln-ii- part; ha\ing ample li. It. facilities in Gaston Co., thi'V hav() down to as low as >il pc^r gal., in some instances, will n they were rcMiuircd to pay tlu' !•(> ct. tax. It was first reported tluit they obtaiiK'd whisky direct ly from illicit dist illciies and refilled their stamped biurels; that report <-oiild not l)e sustained because the illi'-it ilislilleries could not be foiiiid in t hat sect ion. It was then <'ir- cukited that the store keepers were allowing t heir (list illciies to keep exce.sM of 2 gals, made iVoiii e\civ Itiisliel ol' grain. This report was THE SIXTH DISTRICT OF NORTH CAROLINA. 487 without foundation, as the excess which they could possibly make would not have supplied the tenth part of the amount sold, and be- sides would have iuvolvea one-half of the store-keepers in the dis- trict, many of whom are men of irreproachable character. The next report circulated was that the store-keepers were dividing their pay with the distillers in order to get assignments, which enabled the distiller to put his whisky upon the market at a lower price than the honest dealer could afford. When these reports started, the collector assigned Dep'y Jewett to the division comj^osed of Gaston and Cleveland Co's, with instructions to make thorough investigations into these alleged violations and abuses, and refused himself to recom- mend the appointment or assignment of any man asked for by a distil- ler. 1 have made a thorough investigation of this matter, and have concluded that while there is no positive evidence that any store-keeper has divided his pay with the distiller, there are circumstances which warrant the presumption that some of the store-keepers, in order to se- cure an assignment did enter into an arrangement of some kind with the distiller, but when the time came to divide the store-keeper declined. Where the contracts were carried out, if any were, we have no means of getting the evidence. If they were not carried out the evidence that they existed is only circumstantial. I think that much circulation has been given to the report by some of the distillers saying publicly that they would not run unless they had a st'k. & g. who would divide. J. W. Beaty, owner of distillery No. 1290, suspended about the 1st of June, declaring he would not run unless the store-keeper would give him part of his wages. In about ten days he resumed operations with the same store-keeper. Dep. Col. Jewett went to the distillery to investigate, when another suspension took place for one week, then commenced again, and is in operation now. The impression was created with the neighborhood that the st'k, & g. had acceded to the distiller's terms al- though both deny it. I visited the distillery on the Cth inst. but Store- keeper A. E. Abernathey was sick, and found W. R. Rankins acting for him. J. J. Biggerstafl', who owns distillery No. 1367, told Store-keeper L. C. Ford, when he went to take charge of his distillery, alter being assigned there, that two store-keepers, G. W. McLaughn and J. K. Lewis, had been to see him about starting his distillery and had offered to divide their pay, and that he must do the same, as it was customary. Ford, being a new man, replied that he was not aware of that, but would inquire about it and do what was custom- ary. He went to G. W. McKee, U. S. st'k. & g., who told him that it was illegal and not customary, and that he could not subscribe to the oath on his pay account if he did that. Ford went back to the distil- lery, and is there yet. Lewis and McLaughn both deny that they ever made any proposition to him, and Lewis says he made the same asser- tion to him concerning McLaughn. The presumption is that the dis- tiller supposed the store-keeper would accede to his demand without objecting. John A. Keener, st'k. & g., makes a statement that P. M. Carpenter, owner of distillery No. 1320, susi)ended his distillery while he was store-keeper for him, because he. Keener, refused to carry out an arrangement which Carpenter says was made between himself and John Rutledge, Keener's predecessor. Said arrangement was that he was to ask for Rutledge assignment to his distillery, and that Rutledge agreed to give him $2 per . If you will send Mr. Kellogg to Wilkesboro' to remain a week, there will be witnesses pointed out to him who will testify that U. S. storekeep- ers have assisted in removing whisky from the cistern room to the private dwellings of the distillers. I think Kellogg must be all right from the way Mott had his deputies cutting down the tubs of the gov. distillers when he learned he was to take the place of Col. Chapman. Capt. J. S. Peden, de]^t. coll., was at work in this county for a week before Kellogg came, had all of them right when he arrived, but had taken them down from J(» to L'O inches. Send Kellogg to J. R. Henderson's, 2 miles from Wilkesboro', & 1 think he can get some valuable information ; they tried to ruin him because he threatened to report some of them. I will meet him there. Send a copy of this letter to Kellogg, and the Commissioner. Yours, truly, JAMES JOHNSON. TiiioAsu It Y Department, Prcrmlirr 1«>, 1S70. Ji('spe((riill\ iclericd lo the CoMiniissioner of Internal lJe\enue. J. K. ri'roN, Chief Cleric. THE SIXTH DISTRICT OF NORTH CAROLINA. 489 No. 1821. United States Internal Revenue, Charlotte, N. C, Jan. 7, 1880. Hon. Green B. Kaum, Commissioner, Washington, T). C. : Sir : lu compliance with your letter of Dec. 22d, F. U. S. (containing- copy of a letter purporting to have been written by James Mason, com- plaining of frauds in the Gth dist., N. C), and directing me to investi- gate the matters complained of, I have the honor to submit the follow- ing report : I visited the house of J. K. Henderson, as requested in the letter, ancf found that James Mason and J. R. Henderson were one and the same person ; that all the letters written and signed "James Mason" were written by J. R. Henderson. He reiterated all the charges made in his letters against Collector Mott, and his officers, but absolutely refused to appear as a witness against them, nor could he give the names of any reliable witnesses as to the charges lie makes. The only course he could suggest was to subpoena certain parties before the grand jury, and he thought they would substantiate what he said. The names of all the parties he suggested, with one or two exceptions, are old offend- ers of the revenue laws. I lind, also, that Henderson has been indicted for illicit stilling, and has taken the benefit of the "Amnesty proclam- ation." I learn, also, that he has been an applicant for an office under Coll'r Mott for a long time. So much for Henderson. As to the charges he makes, I have no doubt that some of them are true. As to the charge that store-keejiers are dividing their salaries with distillers, I could only learn that such things were charged in a general way ; but no specific case could be cited. This is a difficult thing to ascertain, as both distiller and store-keeper would deny it. As to the charge that the majority of Collector Mott's officers are Democrats, I find upon investigation that about one-fourth of his offi- cers were Democrats when appointed. The reason of making these- appointments Coll'r Mott gives is, that it is difficult to find Republicans^ that are qualified. This may be the case in some instances, but I think they are rare. I have my doubts as to the propriety of appointing Democrats, for I do not find them as attentive to their duties as the Republican officers are. As to the charges that Collector Mott is in collusion with violators of the revenue law, or allows violations to go unnoticed, 1 see nothing to warrant such a conclusion. Mr. Henderson certainly has not a very great regard for the suppres- sion of frauds, as he distinctly stated t(> me that he did not tliink it wrong to lun an illicit distillery, and that he would not inform against any man for violations of the revenue laws. His Jiylit api)ears to be more against Collector JMott and his officers than any desire that thcr laws should be susrained. While I am convinced that in some instances store-keepers have been guilty of neglect of duty, and have allowed distillers to defraud the- governmeur, I do not think Collector Mott woidd desire to shield them from punishment. Respectfully submitted, HORACE KELLOGG, Revenue A(/int^ 490 COLLECTION OF INTERNAL REVENUE IN No. 0584. United States Internal Revenue, Greensboro\ N. C, December 17, 1880. Hon. Green B. Raum, Commissioner of Internal Revenue^ Washington^ J). C: Sir : Referring to your letter of Nov. 22ninion just as good men as thuse now em[)loyed can bo secured at that iigure, and THE SIXTH DISTRICT OF NORTH CAROLINA. 491 few, if any, of tlie force now eiiii)loyeure. 1 thiidv, however, tliat it wouhl be well to start store-keepers and j;augers iu this section at three dollars per day, and in- crease their pay as their services increased in value to the oovernnient. I believe that cousideral)le spirits ])roduced at re;:;istered distilleries in these districts is lenioved without payment of tax, and that if it were possible to look after these distilleries one-half as sharply as distilleries in other sections of the country are looked after, I believe the increased amount of si)irits returned for taxation would do more to reduce the cost of (iollection than reducing the pay of officers would accomplish. The i^osition of store-kee])er and ganger at a distillery running four bushels a day, located in out of-the-way places, as most of these distille- ries are, is a dull business, and the chances of a visit from an agent are so slim that it is not surprising that these officers gooff and leave their distilleries while iu operation, as 1 am iuformed and believe is fre- quently the case. It is impossible fcu' the agent in charge of a division like this to visit distilleries often and attend to the many other duties assigned him. I think the agent of this division ought to have two or three competent gaugers assigned to special duty under him, who should be kei)t visit- ing and examining registered distilleries and inspecting the officers at distilleries. The deputy collectors, in some cases, have more distilleries in their divisions than they can pro])erly attend to. In my opinion, one visit from an agent or officer on special duty un- der him will do more good than several visits from the local officer. I believe it is conceded by all ])ersons having a knowledge of the dis- tillery business here, that the visits of the special force of agents and gaugers who examined the distilleries in this State some mouths ago had an excellent effect on both officers and distillers. I think the assignments of store-keepers and gaugers ought to be changed occasionally, and that if these officers and their work could be inspected, and the distilleries examined frequently, great good would result to the government. Iiegretting my inability to give you at this time more definite informa- tion on the subjects referred to in your letter, I am, very respectfully, A. H. BROOKS, ■ Revenue Agent. [Note appended to this report iu lead pencil.] " Gen'I Clark : See remarks of Brooks on p. 7 in re' to transfer of store-keeper. I think it would be a good plan to make Mott do so. " F. D. S." Xo. GSl. United States Internal Revenue, Greemhoro\ N. C, Jan. 3, 1881. Hon. Green B. Raum, Conwiissioner of Infernal Revenue, Washinyfon, D. C. : Sir : I have the honor to report that I have in my possession several affidavits of officers in the 0th dist. in this State, charging Collector 492 COLLECTION OF INTERNAL REVENUE IN Mott with uiilawfally withholding certain moneys due theuj for servicci performed the government, etc. Some of these affidavits have been in my possession several weeks. I have not investigated tliem for two reasons: First, for tlie reason that my time has been so fully occn])ied with other and more important business; second, for the reason that when I have been able to spare a day Collector Mott has been absent. lu mj opinion Collector Mott should have an opportunity of meeting the parties who have made these affidavits before same aj-e forwarded, and I have been waiting for an opportunity of investigating the case this way. It will probably be two or three weeks before I cau take the matter up. I understand now that Collector Mott has resigned. If this be true, I would respectfully request to be informed what, if any, action you desire me to take in regard to these affidavits. Very respectfully, A. H. BROOKS, Revenue Agent. No. 682. United States Internal Eevenue, Greensboro', N. C, Jan. 3, 1881. Hon. Green B. Raum, Commissioner Internal Revenue, Washington, D. C. : Sir : Referring to our conversation some time ago in regard to work in the 6th dist., N. C, I regret to have to report that on account of the pressure of very important matters requiring immediate attention, I have been obliged to neglect that district for some time. When I as- sumed charge of this division I assigned Revenue Agent McLeer and Mr. Crawford to duty in that district. They operated in the dist. eighteen days, most of the time in the vicinity of Statesville. The frauds they unearthed during their brief stay showed the importance of the work to be (lone in that district. On account of having to at- tend court in New York City the forei)art of November, on tlie iltli of that montli, I was obliged to turn the Tatum case over to them, which fully occujued their time for over a month in the dist. of S. C, and the 4th dist., N. C. My time has been, so far, fully occupied night and day withniattersof the utmost importance, and T nowhave enough imi)ortant work on hand (which must be attended to in order that the government interests may not suffer in the courts) to last me three months. I realize tlie fact that there is no district in the country that stands so much in niu'd of a thorough overhauling as the (Itli district of this State. There is work enough in that . Racm, Coin/nisslniirr liilcrnttl h'crciiKc, ]V(isliingt<>ii, 1>. (J.: Sill: I have Wm- Iiumoi' to transmit herewith report of Revenue Agent McLeer in regard to .1. ('. Sctzer, store-keeper and ganger at J. W. THE SIXTH DISTRICT OF NORTH CAROLINA. 499 Clark's distillery, No. 1750, Gth dist. N. C, where eight barrels of spirits was removed from the distillery witliout the payment of tax. It seems to ine that this is auother case wliere the officer ought to be criminally prosecuted. Very respectfully A. H. BROOKS, lie venue Agent. No. 902. United States Internal Revenue, Greensboro, N. C, May nth, 1882. Col. A. H. Brooks, Revenue Agent, Greene'boro\ N. C. : Sir : I have the honor to report that, in compliance with your in- structions, I did, on tlie 1st day of May inst., proceed to the county of Gaston and Cleaveland, in the Gth dist. of N.C.,and made examination of 26 distilleries in said counties as follows: No. 1748, 1775, 1327, 1202, 1386, 644, 2107, 1308, 2040, 2093, 1762, 1230, 2099, 2117, 2082, 2089, 1768, 1776, 1749, 2064,4234, 1247, 997, 1005, 2097, 1007. That 1 also made a record of several numbers, &c., of the tobacco stamps found in said counties to the number of 166 boxes. That in the examination of said distilleries and the books required to be kept by the storekeepers I found in many instances that the store-keepers kept and made the entries in the books required to be kept by the distillers, and that it was almost a universal rule for the store-keeper to temper the spirits and reduce it to the per cent, proof required by the distiller. That I only found saccliarometers in use at two of said distilleries and one of these was at the distillery of Henry Hardy, No. 997, and the store-keeper, W. H. Hoffman, did not know how to use it, and tliat the specittc quantity of the beer was not correctly recorded in the store-keeper's books in but one instance. That the spirit pipes leading from the still, to the cistern room in quite a number of the distilleries were in a very poor condition. Some of them having openings by which spirits could be abstracted. For particulars as to the same, 1 would refer you to the reports made on forms 19, showing condition of said distilleries. That I examined Franklin C. Ferguson, deputy collector for the 5th division of the 6th dist. of N. C, who is 42 years of age ; has been deputy for six months last past ; was a store-keeper and ganger previous to his appointment as such deputy, and it is my opinion, after ha\ ing eanvassed his said division with him, that he is not a man of sufficient ability to keep said division in good shape and prevent the perpetration of frauds on the revenue department. Very respectfully, JAMES W. BALLARD. United States Internal Revenue, Greenshoro\ N. C, May 17, 1882. Hon. Green B. Raum, (commissioner Internal Revenue, WasJmigton, D. C. : Sir : I have the honor to transmit herewith report of Mr. Jas. W. 600 COLLECTION OF INTERNAL REVENUE IN Ballard, dated the ITtli inst., iu regard to work i)erforined by liiin iu tlie 5th division, 6th district, X. C. Very respectfiillv, * A. H. BROOKS, Rercime Agent. No. 972. United States Internal Revenue, StatesviUe, N. C'., May IS, 1882. A. H. Brooks, Esq., Revenue Agent, Greensboro^ JV. C. : Sir: I yesterday drove out to Johu C. Plyler's distillery for the pur- pose of examinino- it, but when I got there I fouud it closed, having f»uspeDded Apr. 29th. I met Mr. Plyler at his house, where he pays special taxes as a R. L. D. He said he intended starting uj) his distillery again if he could get the kind of a store-keeper he wanted, but unless a store-kee])er would do just as he said, he would be damned if he could stay around there. Mr. Plyler told me that no store-keeper could come there who would not pay him a dollar and a half per day for his board. I am informed that Store-keeper Hoover, who was with Plyler when be shut down, is an honest, reliable man. I think Plyler suspended in order to get clear of Hoover. Plyler at once made application for another store-keeper, and the collector assigned store-ke.eper J. P. Doug- lass. He went to the distillery, but when he heard Plyler's terms, he refused to stay. 1 have reported these facts to I)r. Mott, and he says that unless Ply- ler will start up with Store-keeper Douglass, he will have to remain under suspension. Very respectfully, EDWARD McLEER, Bev. Agent. United States Internal Revenue, Greenhoro\ N. C, May 19th, 1882. Hon. Green B. Raum, Commissioner of Internal Eevenue, Washington, D. C. : Sir: I liave the honor to transmit herewith rei)ort of Revenue Agent Edward McLcer, dated the 18th inst., in regard to -lohn C. Plyler, distiller Gth n of the faithful, conscientious, and i)atient manner in which (iMuucrs Delaney and Howiird, of Milwaukee; Eaton, of Kentucky; and Stewart, of (Mii- cago, ])erformed the work of instructiui;' the ofti(;ers in tlie counties above named, and cannot but feel that their labors \\\\\ jtrove highly beneficial to the revenue service in this district. In the outset 1 wish to say that I have had some experience in the same condition of aft'airs that exists in the revenue service in this dis- trict, and fully appreciate the difficulties which have surrounded every attempt to make the service conform to the requirements of the de- partment, and at the same time to consult the best interests of the revenue. I am fully satisfied, therefore, that it is neithcir impracti- cable or untimely to attemi^t to raise the status of the revenue service in this district. Such suggestions as I am constrained to nndce are based upon the general condition of affairs as I found them, disiegardiuii' the exceptions of ;i favorable character. The distilleiies being crude in construction and operation, and the capacity limited, the officers have drifted into a condition of indifier- ence, and their supervision has been of a constructive or nominal char- acter. They have failed to inform themselves of their responsibilities and duties, and too often have accepted precedents instead of conJi)li- ance with law. Few officers have in their possession a coi)y of Seiie.s 7, No. 7, and fewer still have given it any thought or study. Many have admitted that they have not seen it for several months. In keeping their books they are guided by precedent, and their en- tries are almost entirely constructive, never literal. Few of them could swear to the entries in their books if brought into court. No matter how much grain may be brought upon the premises, the entry on form 17 shows only tlie amount used each day. There should be in every distillery a meal box, which should be se- cured with a lock. The pipes leading from the tails of the worm-tanks should be locked at each opening The abstraction of low-wines and whisky is a very simi»le matter in nearly all the distilleries. Where glass tubes are used as separators, they should be sealed or locked. The cistern-rooms, almost without exception, are constructed with single boards, which can be removed and replaced without detection, and spirits can be taken from the cisterns without any difficulty. I see no reason why the spirit-i)ipe should not be securely connected with the cistern, and the cistern remain stationary, with a locked fau- cet, or locked trap on top. In many cases there are really no cisterns used as such, the cask being tilled and taken away, and another one taking its place. The cooperage being second-handed, or, at best, very inferior, the leakage in warehouse will naturally be great, unless intelligent atten- tion is given to the stock in bond. By reference to the gangers' reports of iusi)ection of spirits (and the gangers in my charge carefully gauged every package in all the warehouses visited), it will be seen that the wastage, from leaks or theft, in many cases is very large. In this connection I would state that I have, from observation and interrogation of officers and others, concluded that the practice prevails to a certain extent in the district to fill up partially empty packages from the cistern-room, ui)on withdrawal from bond. I am the more cer- tain of this, as I heard of no rebates being demanded from distillers by wholesale dealers on account of excessive wastage. 502 COLLECTION OF INTERNAL REVENUE IN AMtli but few exceptions I fouud that the capacities of the tubs were greater than reported, and I can see no reason why the distiller should not, under the loose system prevailing, use more grain than he is enti- tled to. I think the impression prevails very generally that distillers are only accountable for the amount of their assessed capacity (two gallons to the bushel net), and that all over that amount is free for abstraction. As the product of the distilleries of this district is reported almost uniforndy at about two gallous to the bushel, I infer that the margin is never tax-paid. I believe that the remedy for this course is to be had in a careful rs- survey of the tubs, which shoiild be numbered, and their contents in cubic gallons in every case marked thereon. Xo matter what the size of a tub was, or its contents, T found that the officer at a four-bushel house iuvariablj' entered on his book "60 gallons." There seems to be but little, if any, check upon the use of unauthorized material. The adoption of some system in conformance to the law in this matter would be no hardship. The officers have an idea that their duties are ended when the work of the day is concluded, no matter what the hour may be, and I believe a nuijority of them are not at their distilleries when work commences in the morning. Those living at a distance almost invariably go home at an earlier hour Saturday, and return at their convenience on Mon- day, in some cases leaving meal-box o])en and key of low-wines pump in the hands of distiller. Many officers are in the habit of absenting themselves from the distillery during the day while it is in operation, a practice not likely to incur the displeasure of the distiller. 1 believe the practice has prevailed, to a greater or less extent, of the officer paj'ing, directly or indirectly, a x)ortion of his salary to the dis- tiller as a consideration for his coutinning his operation. This is difficult to i)rove, but it can be broken up by the vigilance and intelligence of the deputy collectors. The lack of faniiliarity with the gauging rod and hydrometer, and the correct method of using them, on the part of most of the officers is uniform. The gauge of the i)ackages is almost invariably too hi^h, and as distillers have frequently admitted to me that they " Avanted them as l)ig as they can get them," 1 am forced to 1)elieve that many officers ha\'e com]>lied witli the wislies of the distillers, and thus aidero\iding • he ollicer is 1 rust worthy. 1Mie collector shonld re(piir<', each officer to take till' pro(»fand onts of e\erv package that is wit lidrawn, and ibr- THE SIXTH DISTRICT OF NORTH CAROLINA. 503 ward such report to the collector, to be filed in his office for reference. In addition to this, 1 think deputy collectors, when they visit the dis- tilleries, should inspect the stock in warehouse and take note of extraor- dinary outage. The general store-keeper should make a similar report when he with- draws any packages. Of course, the officer on duty at a distillery should proni})tly report i)ackag('s with large wantage as soon as dis- covered, and he should freciuently examine the packages to that end. When an oflicer is assigned to a distillery he should, in (jompany with the ofiicer he relieves, take outs and ])roof of all the j)ackages in ware- house in order that the responsibility can be properly placed of any- thing irregular. No stems should be issued to officers in the district except Kos. 1 and 2, as they never use the others. Every ofiQcer should be required to })rocure a gauging-rod and the new wantage-rod, if he has none, and where the one in use is unfit for use from age and defect, he should procure a new one. With the patient instructions given the officers by the special force, I think gauging, including a knowledge of volume, will improve in this district. I desire to express my unqualified belief that the only true means of lifting up, assimilating, and developing the revenue service in this (or any other) district is tlie frequent change of officers from one i^lace of duty to another. Under the i)resent system the officer who remains a year or more on duty at one place becomes a fixture and grows careless and indifi'erent. His symi^athy and intimacy with the distiller leads him to permit or sanction grave violations of the law. Xo assignment over four months should be made at one place. The standard of the service can be elevated, it reform is instituted, and if the collector should see fit to adopt any of the suggestions made by the special force sent into the district, a circular embodying instructions should be sent to every officer, who should understand that efficiency will be the highest recomuuMidatiou for retention on duty. In tliis connection, I beg to say that, with few exceptions, the officers of this district can be made int. The condition and needs of the distilleries in their respective divisions should be jfiaced before them and time given them to put everything in proper sha])e. A fail- 504 COLLECTION OF INTERNAL REVENUE IN lire to do so should have but oue result. I believe an equalization of the salaries of deputy collectors, aud an addition to their expense ac- counts, would be beneficial to the service. In concluding- this suniniing up, I had in my mind to say tliat the de- partment does not demand ivtjtossihilifies of its officers, but it does demand that under everj" and all conditions the officer shall take every step necessary to secure the payment of the tax vjwn all the spiritn pro- duced. To do this vigilance and faithfulness and an intelligent knowledge of his dnties is imperative upon the i)art of the officer. For this jmrpose he is commissioned, gives bond, and receives a remuneration much larger than any other class in the State. I think, with the increased number of distilleries in the district, the duties, and consequently the ex- penses, of the general store-keepers will be very largely increased, and to my mind it will be only simple justice to recommend either an addi- tion to the number or an increase of salary to pay their expenses. This I am satisfied you will se^ the necessity of soon. I beg to call your attention to the following- letters, which appear to demand your early attention : Ganger Hewson reports offic-er J. F. Mundy on duty at Xo. 1320, in Lincoln Co., as a one-armed man who is incompetent to perform his duties. The distiller has heretofore done the gauging for Mundy, and he will hardh' ever become proficient in his duties. Ganger Eaton, W. M. Lippard as very dull and incapable of learning the duties of his office. M. L. Hooper's gauging, at J. S. Daniel's, was so incorrect as to war- rant the supi)osition that he either knew nothing of his duty or did not gauge the bbls. at all. He was in the habit of absenting himself from the distillery for several hours at a time dnring the day, and closed his career at Daniel's by a shooting aflray, the merits of which may be dis- covered by investigation. A. W. Klutz, on duty at Salisbim', has a habit of going to his dinner^ one mile away, and absenting himself while work is going on at the distillery. Ganger Delaney reports C. A. Wilfong as dull and incapable of learn- ing his duties. At J. B. Ijaniers distillery the facilities for obtaining and using un- authorized grain are so great as to demand prompt attention. Lanier rectifies under two stamps. \V. P. Cline's distillery requires attention. No openings in the pipes are secured. The only lock in use is on the se])arator. The store-keeper at Xo. V.j'iA has enteied on his form IT.of; lbs. malt received, and noth- ing more, and enters as used four bushels per day. He receives 20 or 30 Viusliejs of grain on the premises, and don't enter it. Ganger Howard reports ,1. W Douglass at No. IKJL* as iinittentive. He leaves his (listillery dnring working hours during the week and on Saturdays, retniiiing late on Monday. lie virtually adn'iitted there- filling of pkgs. from cistern-room on withdrawal. S. M. Iteed has i>een in service i;; months, and has no ganging-rod. (Janger Delaney re|)orts J. I'\ lluss as veiy dull. lie has no hy- drometer. His books ai-e ])Oorly kept. He is on duty at Siegle's dis- tilleiy, whieli has no sign, as i'e(|uii'ed by law. This is the distillery where all ilir spirits in t he warehouse were stolen, and where there siiould he a lesnrvey. \\u\. K'ohinson, s. and g. at ("alxt-il's distillers, (i.'.I, was absent from till' (lislilleiv ;i( noon of Monday, April iL'th. He went honu' Saturday THE SIXJH DISTRICT OF NORTH CAROLINA. 505 iioou and left some ot'lii.s keys with tlie distiller, the meal-box half full was oi)eii, and wasliin^' and boiling- ^oiii<;' on. Tie returned at 4 p. m. IVlonday. The cistern-rooni was sliaky, on(^ of the boards was loose, and easy entrance could be had. C W. Lowrance, at distillery I'JOt, was found four miles from distil- lery A])'l 8th. He admitted he had been away all the forenoon. His books were incorrectly kept, and lie had been so lon<;' ou his duty at this house that he had forgotten all he knew. He should have a rest for at least six months. J. F. Osborne, at distillery 132(>, is sus])ected of being the real pro- prietor of the place. He was keeping his books constructively and in- correctly. A package of spirits was in the cistern-room which bi'longed to the old firm, and which api»arently had contained over 20 gallons when the house had suspended. Store-keeper didn't know that any re- port had ever been made about it. J. A. Hoover, s. and g. at Plyler's distillery, leaves every day be- tween 2 and 3 p. m. — about the time work is done. He denied it, but the distiller admitted it without Hoover's knowledge. J. A. Price, s. & g. on duty at A. F. Smith's distillery, was absent from his house when the ofticers visired the i)lace on two different occa- sions. Distillery was under temporary suspension of a few days. J. R. Cline, s. and g. at Trout's distillery, reports that no distiller's books have been kept since he has been on duty there — October, 1878. S. Canley, s. and g. at Wallace's distillery, is not vigilant, and his books are incorrectly kei)t. He never reports 18 lbs. bran, nsed daily. There is no meal-box or place to put meal at all at this distillery. Pipes are not locked, and the whole apparatus is in bad shape. H. Y. Mott, s. and g. at No. 1389, does not preserve any system at his distillery. Time of filling and emptying and filling is disregarded. Ganger Eaton visited Bost's distillery, 1369, at 8 a. m., Ap'l 13, and found it in operation. The store-keeper, O. M. Barclay, did not arrive until an hour later. He has no gauging-rod. Ganger Eaton re[)orts that there should be more locks at distillery No. 1713. Thes. & ganger, M. A. White has no gauging-rod. McCoy, s. &. g. at Daniels's distillery No. 647, recently assigned to duty, boards more than two miles from the distillery, gets there between 9 and 10 a. uk after work is begun, and leaves early. He is not atten- tive or faithful in the discharge of his duties. At Powell's distilleries near Morgan ton, Nos. 936 and 1714, there is a large number of empty pkgs. in the warehouses. (See Ganger Delaney's report.) One i)ackage, see No. 58, is missing. The ofticer on duty, Bristol, had never dis covered its absence. His gauging was wild, and his proofs runs from 87 to 104, all marked 100. He has been long enough in the service to have become efficient, but has not done so. Ganger Stewart reports distillery No. 1307 as needing attention. Au opening in the spirit-pipe permits the abstraction of spirits. The fer- menters are not marked with number or capacity. D. Fronabarger, s. & g. at distillery No. 1710, sanctions, through ig- norance, irregularity in the mashing and fermenting. He had no gaug- ing-rod, and did not compreLend his duties. N. L. Whitley, s. and g. at dist. No. 1314, has no locks for tail- boxes of the worms ; had two barrels whiskey in cistern room because he had no w. h. stamps to aftix to them ; had no hydrometer; distiller keeps no books; fermenters not numbered or marked, E.. J. Williamson, s. and g. at distillery 1350, does not weigh his grain received or issued, but permits distiller to help himself. He 506 COLLECTION OF INTERNAL REVENUE IN leaves tlie distilleiy wbeu iu operation at uoou.. He has no gauging- rod. ';::^~ JohnA. Keener, s. and g. at distillery No. 1323; he has no form 18; no gauging or wantage-rod, and the distiller has no books. While the above irregularities are cited in detail, abnost all of the distilleries shoukl receive a close examination from the deputies in their respective divisions, with a view to i)utting everything in better shape. In conclusion, I beg to express my appreciation of the arduous and difficult nature of the work in your division as revenue agent, and trust and fully believe that you Avill succeed in bringing the same up to a higher standard. B^OCt I am, very respectfully, yours, T. C. TEACIE, Revenue Agent. The following papers were offered in evidence by the Chairman : ExMhits. Treasury Department June 2Sth, 1882. Hon. Z. B. Vance, U. S. /Senate, Washington, D. C: Sir : In reply to your letter of the 27th instant, I have the honor to transmit herewith, for the use of the Committee of Investigation into affairs in the sixtli district of North Carolina, copies of papers on file in this department relative to the removal in 1874, and the reinstate- ment in 1875, of J. J. Mott, late collector of internal revenue in said district. Yerv respectfully, CHAS. J. FOLGEE, Secretary, dec. United States Internal Revenue, Supervisor's Office, Dist. of Ya., Carolinas, Ga., & Fla., Raleigh, May 2d, 1874. P. W. Perry, Esq., SK/xrvisoy Int. Rev., Raleigh, IS^. C. : Sir : It becomes my duty to report the following facts (;on(;crning the office and affairs of Dr. J. J. Mott, coll. of int. rev. for the (ith district of N. C. : 1. At tlu! A])ril tHrm of the U. S. dist. court (1874) indictments were loiiiid against five gangers of th(;()th dist. N. C. for fraudulent accounts, these a(;<*onnts embracing altogether seventeen months. Nearly all, if not «*.very one, ()f these fr;iiidulent accounts were made out for tliese giiugers in Dr. Mott's oHice by .]. A. Clark, his chief clerk and de])uty. 2. These iicconnts were sustained by forged vouchers, m;iny of which wei-e maroved by the assessor of the district in the pre- vious May. I then had a conversation with both ^lott and Clark on the subject and called their attention to the law, I understood tliem both to promise that a new bond should be required April 21st, 1874. I asked Coll. Mott if the bond had been given, and he replied that he 508 COLLECTIOX OF INTERNAL RKVENUE IN. ^^ supposed it had." On tbe followiiiii day 1 saw Daniel liinisclf and asked Inni if lie bad store-keeper at tbis distillery was removed from oltice on my report of bis fraudulent practices, and another w.hom 1 believed to be reliable was assigned to the distillery. As soon as the distiller learned of these changes he communicated with Mott, ami neither of the men above referred to was sent to this distillery. I bave tlie very best reasons for believing that a week seldom passes without a large number of legal distilleries where there were very few ])efore. Some of his troubles come directly from his zeal in encouraging these distilleis and from the diiliciilty in obtaining suitable men to till the ofticial positions which these distilleries necessitate. Respectfully submitted. A. M. ORANE, Rev. Agent. No. 4302. U. S. Internal Revenue, Supervisor's Office, District of Virginias, Oarolinas, Georgia, and Florida, Raleigh, N. 0., May 4, 1874. Hon. P. W. Perry, ^ujiervisor Int. Rrv., Raleigh, R. C. Sir : I desire to call your attention to the following statement, and ask your instructions : AVhile in attendance on the U. S. dist. court for tlie western district of N. C, at Statesville, attempting to secure the indictment of int. rev. gangers, for })resenting fraudulent bills and forged vouchers, I learned that tbe deputy collector, before whom the oath on the bills api)eared to have been administered, had never administered the oath as his certificate set forth. This prevented the indictment of the gangers under sec. 00 of the act of July 13, 1800, the only revenue l*w provid- ing a x)unishmeut for the offense. They were, however, indicted under the act of March 2, 1803, which provides for the punishment of general fraudulent claims. in the mean time I obtained proof that J. A. Clark, the deputy col- lector in question, made out the fraudulent* bills, and some, if not all, the forged vouchers. I then asked to have him indicted under sec. 98 of the act of July 20, 1808, which very clearly defines the offenses which lie had committed; but the district attorney declined, on the ground that a deputy collector is not an '-officer or agent appointed and acting under the authority of any revenue law of the United States,''^ to which two classes of persons the jtrovisions of this section are limited. 1 also asked to have this Clark indicted under sec. 97 of the act of July 20, 1808, because he was surety on a distiller's bond, and therefore interested in the production of distilled spirits ; but I was met with the same statement, that a deputy collector is not a revenue ofidcer. I then asked to have this Clark indicted under the general act of March 2, 1803, which also applied in general terms to the offenses he had committed; but the district attorney declined on the ground that the application of this law to the revenue offenses was a new thing, and he did not wish to proceed further under it until he had tested it in the cases of the gangers. All this trouble arose, first, from a failure of a deputy collector to administer oaths as he is required to do, and as he had certified that he did do ; and, second, from the fact that the district attorney had no law that would punish him, because he is not an officer. The first is a very important point, and one upon which too much 510 COLLECTION OF INTERNAL REVENUE IN stress cannot l>e laid, because of the peculiarity of the revenue laws in affixing- the penalty, not to the fraud, but to the perjury of a false oath. On the second point, I desire to be referred to an authoritative ruling or law which will fix some puuishnieut ui)on deputy collectors, like this one, who violate the idain provisions of the revenue laws under which they hold their appointments. Very respectfully, your ob't serv't, A. M. CRAXE, Bev. AgH. «TATESV1LLE, N. C, May ]."), 1874. Hon. J. W. Douglass, Commissioner of Int. Bevenue : Sir : In pursuance of my letter of the 7th inst., I respectfully sub- mit my answer to the abstract of charges furnished me from the report of A. M. Crane, dated May 2nd, 1874. 1st Charge. — " Fraudulent accounts, for which gangers were in- dicted, were made out for the gangers by J. A. Clarke Collector Mott's chief clerk and deputy." Answer. I do not know of my own knowledge that any of these ac- counts alluded to were made out by Clarke. I think I understood that some of the gangers, on account of inexperience, got him to assist them in making out their accounts. I received some of the accounts from time to time, but not all. In assigning gangers to woi'k, which I always kept under my own supervision, I attempted to arrange it so as to make as little expense to the government as possible, and left the accounts to be examined by Mr. Clarke, with instructions to approve them if they were reasonable. The details of the office were performed by my clerk and deputies. A general supervision of the district, which is very difficult, and the sole charge and execution of all the general and im- l)ortant correspondence connected with the office was as much, to say the least, as I could attend to. I will speak further of the difficulties in mauaging the district in another part of my statement. Mr. Clarke's exi)lanati()U of this charge will be allowed to accompany this statement, and I hoi)e will be read also. 2nd Charge. — " Forged vouchers, sustaining above-mentioned ac- counts, were luade by Mr. Clarke." Answer. I have no knowledge of any such thing. Please read Mr. Clarke's explanation as to this. ;iRD (JiiARGE. — " Clarke admitted that until recently he never admin- istered oath to gangers on accounts, though he signed the jurat." Answer. It has not been customary for revenue officers to administer these oaths, and I understood that this has been generally the case. Clarke says that he was not in the habit of doing it in the 4th dis- tri(;t, wheii chief ch-rk anepaitment for a consideration," I inclose; letter of 1\ \j. lios(; on liie subject, he being the individual concerning whom I un- dej-stand such r<;porr originated. Mr. ('larke, my clerk and dei)uty, while he has shown great careless- ness in many important mattei's in conneeiion with the ofhce, alwa^'S kept tin; stamp account and all the money atfairs with which 1 in- tiiisttii inst., reporting result of investigations made iu Gaston and otiier counties in the (>th district N. (3. concerning the charges that storekeepers w«'re dividing their pay with distillers, 1 refernul to some of the causes which led to the establishing of so many THE SIXTH DISTRICT OF NORTH CAROLINA. 517 legal distilleries in this district : to the acciiiniilation of spirits in hands of distillers, aii, llhyne, near Gastonia, was about the first to commence selling iu this way. Last year he had license, both as w. and r. 1. dealer. His bbls. and kegs were ordere. lihyne's, who had two distil- leries in opei ation, early in the morning ; am certain that he had no knowledge of my being in the neighborhood; I made a close examina- tion, but found nothing wrong about the premises; I questioned him about his prices, and learned, as 1 afterwards found, that he had no regular price for his whisky. He sometimes sold at $1.10 per gallon in order to introduce his whisky, but nuxde it average $1.25 i)er gallon. I spent that day and part of the next in that vicinity, making inquiry with a view ot discovering, if possible, how Khyne was violating the law. After leaving there I visited Spartansburg, Greenville, Walhalla, and various other pla(;es in S. G, reaching Columbia on the 25th of Jan. I found A. B. Khyne's corn whisky in the hands of r. 1. d's at most of these places. At Greenville, accompanied by Dep. Ccl. Jellson, we tested the proof at several r. 1. d's houses, but found nothing wrong about it. Wherever I could obtain them, I examined the bills, and found his prices to correspond with statements made to me. As this whisky sujiplies S. 0. tratle it very naturally causes complaint on the part of the distillers there. While in Columbia, about that time, 1 con- versed with Collector Braydon about it, who says, 1 " was fully cogni- zant of the fraud and proposed to break it up." Had I been cognizant of any fraud I would have done so, but he nor no one else has ever furnished any other evidence of fraud than that the whisky is sold in kegs containing less than 5 gallons, and some- times at ll.lO per gal. On Feb. 18th, I visited D. H, Andrew, who was confined iu the Yorkville, t^. C, jail, for violation of int. rev laws. He had intimated to Deputy Col'r Gyles, of Spartansburg, S. C, that he could aid mc in detecting A. B. Khyne in violating the law. His proposition was to purchase a bbl. of unstamped whisky from A. B. Khyne, to be delixered on a certain night from his warehouse, which I was to have watched, of course I was to procure his release from jail iu order to allow him the opportunity. ^Vs I had no assurance that he w(uild ever attempt to carry out what he jiroposed to do, after he got out of jail, I could not agree to this ])roposition. He stated that he had dealt m blockade whisky, but had never bought any from Khyne. His reason for believing that he could, was that two men living at King's Mountain, told him the}' could get it for him for $1.()(> i)er gal- lon, from A. B. Rhyne's warehouse at night. I then told him if he had 618 COLLECTION OF INTERNAL REVENUE IN any friend who would enter into this arrangement for him and carry it out, I would procure his release; he replied, " He Iiad, and would communicate with him and make the arrangement," and write to me. But as I've heard nothing more from him, 1 concluded it was only an efi'ort to get out of jail. Collector Brayton says the business is constantly increasing in i)Jo- portions, to the great injury of honest dealers, and the disgrace of the service. It has increased because other distillers finding they could in- crease their sales by supplying consumers in quantities less than five gals., have become r. 1. d's. Collector Brayton gives as an evidence of this " notorious fraud," in Gaston, Co., IS". C, that a Greenville, S. C, r. 1. dealer named N. B. Freeman, wlio deals almost exclusively in this liquor has so prospered that he has established four bar-rooms in that place, and has the whisky come in different kegs addressed to his different bar-tenders to avoid a seizure in that State, on account of making a purchase of over 5 gals. On the 9th inst., while traveling from Dallas, I discovered 5 kegs of whisky in the express car being shipped, one each to the following ad- dress, by B. y. Morris, r. 1. d., at Dallas, N. C; N. B. Freeman, Jas, Jenkins, Doc Burnham, Jno. Bull, and Dick Pool, of Green \ille, S. C. Suspecting that thesekegs were for the same person, that some of these names were fictitious, and that Morris w^as wholesaling without license, I w^rote to Deputy Collector Jellson, at Greenville, giving him particu- lars and requesting him to watch these kegs and see what became of them. I would have sent the communication directly to Collector Bray- ton, but was afraid the kegs would reach their destination before the division deputy could be communicated with. I've not yet heard from him the result of his inquiry, but Collector Brayton explains it by giv- ing the information that " the kegs are addressed to his different bar- tenders to avoid seizure, &c." Now^, the question arises, who is the purchaser of this whisky ; N. B. Freemiin, or the parties to whom it is addressed ! I think it will be agreed that the latter must be regarded as the ])urchasers and that there is no violation in buying while Morris, as r. 1. (1., has the right to sell. But the presumption is that they sell it again, and in that, violate the law by retailing without license. Now, here is an excellent ()])})()rtunity for Collector Ikayton to aid in "■ u])- rooting the trafiic" if the license at each place is in N. B. Freeman's name. During my inxestigation in (Jaston Co., recently, I visited A. B. Bhyiu-'s distilleries, with Deputy Collector JeWett, as soon as 1 reached there, and took s]K'cial i)ains to make a thorough investigation of his premises to see if 1 could discover any fraudulent ])ractices, but could not. I am no ai)<>logist for A. B. Bhyne, nor any of these retailers by the; keg, but I think the true cause of all this complaint lies in the law authoii/ing retail dealers to sell s]>irits in quantities less than 5 gals, without being stamped or without re(piiring tlie r. 1. d's to produce evi- deiKM! that it has been tax-paid. It certainly affords an outlet for the Kale of illicit whisky and oj crates unfairly towarro- teclioii lo I lie wholesnle dealer, and be no injury to llie honest distiller. < )u t his subject I beg lesHC tos;iy IHOI'C hercarter. \ ers of his district, requiring each of these subordinates to i)ay a monthly assessment of one per cent, of their salaries to the collector to meet oftice expenses. I have investigated the matter sufficiently to ascertain that the cir- cular referred to and which is herewith returned is genuine, and was issued and sent out with the knowledge and consent of Collector Mott. I first called on the person from whom the circular was obtained, who informed me that he sent to the collector regular every month one per cent, of the amount received by him each month as per request con- tained in circular, and that other storekeepers and gangers whom he had met informed him they were doing the same. 1 next interviewed Collector Mott (whom 1 met at Greensboro') .on the subject, to whom I showed the circular, and who stated that said circular had been issued b> his direction under the following circum- stances : The employment of a large number of store-keepers and gangers made necessary by the starting of so many registered distilleries in the district, caused to be incurred expenses for which no allowance had been or could be made, which expenses had to be paid from the private funds of the collector and others in the office. One of the items was for the employment of a young mau to i)ick out, wrap up, and mail to store-keepers and gangers supi)lies of blanks, requisitions for whi(;li were coming in every day ; he also helped copy letters to store-keepers and gangers, and in other ways assisted said officers, besides attending to other duties about the office, such as keep- ing the office clean, and running of errands, &c. Tne name of the young man thus employed is Henry Dean, and for some time was paid by the collector and others in the office, who gave him a certain amount of money, amounting to about ten dollars a mouth. A check-book was wanting for the ijayment by check monthly of the store-keepers and gangers' salary; application was made for the same of the department. The collector was informed that the bank at which he made his de- posits would furnish him check -books; this the bank declined to do, so a check-book had to be purchased, and other things in like manner. About the 1st September, 1879, Deputy Collector Coite suggested to the collector that the store-keejjers and gangers ought to hel]) pay these expenses. Collector Mott thinking it right that they should, author- ized Coite to send out the circular letter of September first. Dr. Mott informed me that he did not know just how mnch had been received, but that an account of receipts and disbursements were kept at the oftice of Mr. Dwire, the assistant cashier. On the 2d inst. I arrived at Statesville, and saw Deputy Collector Coite, who confirmed Collector Mott's statement in legard to the matter. I next called on Assistant Cashier Dwire to produce his book show- 520 COLLECTION OF INTERNAL REVENUE IN ing" the receipts aucl disbur-senieTits of nioiiey received fVoiii store-keep- ers and gaugers. He produced a booli, but it was not written up, ])wire claiming tliat he had so much ollice work to do that he had neglected it for some time. In explanation of his manner of keeping this account, Mr. Uwire stated that the store-keepers and gangers usually sent the money in au envelope with some of their rei)orts, sometimes with a memorandum or letter of transmittal, stating purpose for which money was then sent, and sometimes the money was sent without any explanation. The per- son who opened the letter would hand the money, with the letter of transmittal, to him, and he, Dwire, would put it away in the safe until he had time to enter it in the book ; in case no memorandum came with the money, the j)erson opening the mail would make a memorandum, stating from whom received, as shown from reports contained in envel- ope, and hand the same to Mr. Dwire, who would place them in the safe, unless he was at leisure when the money was received, in which case he would enter it on the book ; and in cases where the entries were made at the time the money was received, the memorandum was not kept. After looking over the account, I concluded it would be best to allow Mr. Dwire (to) write up his book and prepare a statement for me show- ing the amount received from each person, together with an itemized statement of the disbursements. I explained to Mr. Dwire the form in which I desired these state- ments made up, and. then counted the balance remaining in his hands unexpended, which amounted to one hundred and fifty-two dollars and eight cents (152.08). 1 left Statesville on the morning of the 5th in company with Revenue Agent Kellogg, visiting Hickory and Asheville, examining tobacco fac- tory and working up on other matters, returning to .Statesville on the evening of the 7th inst. Mr. Dwire had not yet tinished making up the statement, but had it ready on the morning of the 8th. I have checked olf the amounts received for which Mr. Dwire has letters of transmittal or memorandum, and find received from W. T. Holland 28c. and T. ( '. Ford .|1.08, not entered, which amounts I have marked opposite to their names in red. 1 have also checked off on the statement of disbursements the amounts for which Mr. Dwire holds vouchers ; no dates are given in the statements, as the accounts are not ke])t by date. Henry Dean, the young man paid from this fund from September, 1870, to and in(;lu'^ 50 157 66 'I' )t,al cash on lian.l, !>.;(;. .-it li, IHriO 1.54 :W Unaci'oiiiiliMl Coi- W \\Z K'-c*!iv«!\ oC tiieir stat<'ments with the offi cei's at Asheville, and e had before tlie 1 1. S. eoiiimissioner. Very respei'dullv, HORACE KFIJ.OGG, Jicrciiiie A(jeuL THE SIXTH DISTRICT OF NORTH CAR01.INA. 523 Part of Ko. 73. Inclosure ^ 1. Statement of James Yonng. Turnpike, If. C, March 3d, 1881. James Young, liviuj? near the distillery of W. O. Muller, in the 6th dist. of N. C, says that about 2 years ajjo lie worked at said distillery; that by direction of G. W. Cannon, store-keeper & f>auger, he carried an empty barrel upon which the stamps were not destroyed from the bar-room located near the distillery of W. O. Muller, to the bonded warehouse of said distillery; thatthebairel was then refilled, and that the next day, he, Young, hauled the refilled barrel to Asheville, N. C, ta the bar-room of Mr. Sorrells. He says that when he carried the empty barrel from the bar-room to the warehouse that G. W. Cannon motioned him to i)ut his hat over the stamp, that those standing by should not see it, which he did. Part of # 73. Inclosure No. 2. Statement of Peter Miller. Near Turnpike, N. C, March 3d, 1881. Peter Miller, who lives near Turnpike, N. C, says that about 2 years ago he worked at the distillery of W. O. Muller, at Turnpike, district N. C, at which G. W. Cannon was store-keeper and ganger. That on one occasion he helped G. W, Canncm carry a 40-gallon barrel of whisky from the warehouse of said distillery to the bar- room near by. That there was no stamp upon the barrel, except the warehouse stamp. That he. Cannon, told him that the tax-paid stamp had been sent for and that it wouldprobably come by the next day. That he. Miller, never saw the tax-paid stamj), or knew of its having been put upon the barreL Part of No. 73. Inclosure No. 3. Statement of PinJcney William,s. Buncombe Co., N. C, March 4, 1881. Pinkney Williams, wl>o lives about three miles from Turni)ike, N. C.^ says, that (he) has worked at the distillery of W. O. Muller, Oth district^ N. C, at which G. W, Cannon was the store-keeper and ganger. That about the 1st of January, 1881, he saw a barrel of rye whisky brought to the bar*room near said distillery; that the rye whisky was drawn out into bottles, and that the barrel was tlien taken to the warehouse of said distillery and refilled with corn whisky by the store-keeper, G. W. Can- non, and then taken away. The stamps were not destroyed when the barrel was emptied, nor were other stamj>s put upon tlie barrel when it was refilled. He says that at various times he lias seen Cannon, while store keeper at the said distillery, take whisky in jugs from the ware- house to the bar-room. Also that he has seen Cannon fill bottles from the cistrni in the cistern-room of said distillery. Tiiat Cannon has 524 COLLECTION OF INTERNAL REVENUE IN frequently filled bottles for him, Williams, from the cistern-room wliile he, Williams, worked at the distillery. That he has seen Cannon weigh the grain brought to the distillery but never saw him pay for it. That lie does not know of Cannon's having an interest iu the bar-room. Part of 73. Inelosure No. 4. Statement of James Rutherford. Buncombe Co., X. C, March 4, 1881. James Rutherford, w^ho lives about three miles from Turnpike, N. C, says that he has worked at the distillery of W. C. MuUer, in the 0th dist. of N. C, while G. W. Cannon was store-keeper and gauger attlie said dis- tillery ; that he has at various times seen whisky taken from the ware- house of said di!;tillery in one and two galh:)n jugs, and carried to the bar-room near by ; that he has seen said Cannon weigh the grain that was brought there, but never saw him pay for it ; that he has noknowl- •edge of Cannon's owning any interest in the bar-room. iS'o. 234. United States Internal. Revenue, Raleigh, N. C, Apr. 20th, 1881. Hon. Green B. Raum, Commissioner of Int. Rev., Washinf/ton, D. G. Sir : I have the honor to report that on the loth inst., I visited the -collector's office, 0th dist., N. C, for the purpose of further investigat- ing the matter of assessments paid by deputy collectors and store-keep- ers and gangers, for the purpose of defraying the incidental expenses of the collector's office, which payments were made, as per request con- tained in circular letter, issued by Collector Mott, dated Sept. 1st, 1870, re- questing said officers to i^ay for the i)urpose above mentioned, an as- iiessment of one per cent, of their monthly salary. I find the discrep- ancy l)et\veen the statement furnished by Mr. Dwire, who has charge of the in(Mdental office fund, and the one made up at the department, from r('j)()rts of officers who contributed to this fund accounted for iu l)art, iis follows : Tli(^ amounts piiiloyed about the ottice as janitor, and to assist the deiuities and ijlerks in the office, and who, since July 1st, IS8(>, lias been paid from an allowance made by the dei)artriient. Ill reg;ii!.S.S.()() rei>oite(l by W. D. Mason, *!l().0(), reported by Deputy Oolleclor K'ay, 1 am satisfied tlies<' were paid for political puri>oses and should not be included in t he ollice incidental e.\|)eiise a('(u>unt. In regard to the .'>!'. 01) wiiich apjieais on the department statement to h;i\e been paid by I*. M. Ni(dvs, store ke(^per and gauger, I would THE SIXTH DISTRICT OF NORTH CAROLINA. 525 state that on the IGth inst. I called upon Mr. Nicks, at his residence in Yadkin County, and obtaiiuMl from him the following statement: Mr. Nicks says he was tirst assigued to duty as store-keeper and gauger Feb. 10th, 1880, at the distillery of J. F. Couch & Co., Zion, Yadkin Co., 0th dist. N. C, where ha reinained until June 12th, 1880. In March or April, 1880, Deputy Collector Sullivan called on him at the above- mentioned distillery with a letter from Collector Mott, addressed to the store-keepers and gaugers of Yadkin County, requestingall of said officers to sign a blank check for campaign ])urposes. Sullivan had a i)a(ikage of blank checks with him, and ]Sicks wrote his name on the back of one of them. Sullivan told him at the time that it would not amount to more than 15.00 or 20.00, but he afterwards learned that the check had been tilled up for 101.00, the amount due him for services rendered during the month of May, 1880. When, in December, he was called upon to rei)ort the amount paid by him for incidental expenses of the 6th district collector's office, he had i*eceived all moneys due him except his salarj" for the months of May and June, neither of which he has yet received. Not having paid anything for office expenses, he misconstrued the meaning of your letter, and reported $104.00, the amount of his- salary for ]May. In less than a week after he had so reported, Deputy Collector Sullivan called on him, and, upon being informed by Nicks that he had reported to Washington that he had paid $101.00 for office expenses, Sullivan told him that he should not have been in such a hurry to answer the letter, and that he ought not to have reported the^ $101.00 as expenses of the office, as it was for campaign purposes. Then, at Sullivan's request, Nicks addressed another letter to the Hon. Commissioner of Int. Revenue, stating that the $104.00 i>reviously re- ported was not for office expenses but for campaign expenses. Nicks says that he never reported 32.00 paid for any purpose ; that the $104.00 is all that he has paid for any purpose; Deputy Collector Sullivan told Nicks that he would be suspended for reporting the $104.00.. Nicks says Sullivan told other store-keepers and gaugers, friends of his, that he, Nicks, would be suspended for a year, and perhaps for life, for reporting the $104.00. Nicks has not been on duty since the last of February, the distillery to which he was assigned having suspended at that time. Mr. Nicks is an elderly man, and I believe the statement he has made to be true. His statement in regard to indorsing the blank check is verified by other store-keepers and gaugers, who also indorsed blank checks in the hands of deputy collectors for campaign purposes. He seemed to regret very much having made the mistake in reporting the $104.00. By reference to his letter, dated Dec. 20, I find that he did report $104.00 and I am of the opinion that the 32.00 in the department state- ment should be included in the $104.00, which was paid by Nicks for campaign expenses, and that he paid nothing for office expenses. The remaining discrepancies, between amounts reported ])aid by of- ficers and the statement furnished by Mr. Dwire, are, in my opinion, accounted for in part by the careless manner in which the assessment account was kept, and in part by the defective memor\' of the officers who paid the money. I herewith return the department statement; statements furnished by H. X. Dwire, of the collector's office; my report of Dec. 10th, 1880 ; circular letter, dated Sept. 1st, 1879; together with letters of the offi- cers stating amounts paid them — all the papers I have in the case. Very respectfully, A. H. BEOOKS, Revenue Agent, 526 COLLECTION OF INTERNAL REVENUE IN No. 233. United States Internal Revenue, Raleigh, N. C, April 2mh, 1881. Hon. Green B. Raum, Commissioner of Int. Revenue, Washington, T). G. : Sir : Referring to a conversation Lad with yon March 28th in regard to the assessment of officers in the 6th dist., IST. (J., for office expenses, &c., I have the honor to report that on the 12th instant I called upon Collector Mott and handed him your note. Collector Mott stated that he intended to visit Washington soon, and would go prepared to ex- plain to you all matters relative to the assessment of the officers of his •district; he thought he could explain everything to your satisfaction, and would much prefer doing so before investigation was ordered. I was of the opinion that nothing could be gained by pressing the mat- ter, so I concluded to let it rest until further instructed. I regard to the two officers who, it was rumored, had paid or had re- tained from their salary, one $900.00 and the other $400.00, I have to say that I have seen the person referred to as having paid tiie $400.00. He is a poor man, with a wife and thirteen children, and pays the dis- tiller one dollar per day board. He did not want to talk about the matter, but finally made the following statement : He was appointed store-keeper and ganger in 1874, but has not been on duty all the time. He said he kept a memorandum of the amounts he paid, just to see if he was keeping his end up ; he says he has paid in all over $400.00 {dollars), but that all of it was paid for political purposes, with the ex- ception of two or three dollars paid for office expenses. He states that he made all the payments of his own free will, and has no fault to find with anyone; with the exception of his last payment he has paid all in currency. The last time he signed a blank check, and placed it in the hands of the division deputy who broughtit to him, with the understand- ing that it was to be tilled up for $104.00, the amount of his salary for June; but, as there was no money available for June salaries the check was filled up for $108.00, the amount of his salary for July, with his consent. The party who, it is said, has paid $900.00 I did not see, but I learned that he has been in theservicealongtime, and the probabilities are that whatever he has paid has been political contributions. Very respectfully, A. H. BROOKS, Revenue Agent, No. 569. United States Internal Revenue. Greensboro', N. G., Oct. 31, 1881. Hon. Green B. Raum, Commissioner of Internal Revenue, Washington, I). C: Sir: Referring to my letter of the 28th instant, reporting frauds dis- covered in the, Otii dist., N. C, and the recoveiy of seventeen barrels of spirils stolen iVoiii thi^ distillery warehouse of Q. 1). Freeze, on Tues- day niglit, 0<',t. 2r)th, 1 have, the lionor to transmit herewith re[)()rt of Revenue Agent McLe(sr this day rec'd, giving a detailed account of the THE SIXTH DISTRICT OF NORTH CAROLINA. 527 frauds discovered and of property seized. I also transiiiit copy of a certificate filed in the ollice of the collector of the (ith dist., on Oct. 27, 1881, by W. A. Daniels, distiller, certifying- that he had the keys of Freeze's distillery warehouse in his possession at the time said distil- lery warehouse was robbed of its contents. Very respectfully, A. H. BROOKS, Revenue Agent. Statesville, N. C, Oct. 27, 1881. I hereby certify that 1 had the keys of distillery No. 1773, of Q. D. Freeze, and that when W. G. Bogle tax-x)aid two bbls. of spirits in warehoiise of said distillery I retained said keys, and did not hand them to W. G. Bogle until the morning of the 26th of October, 1881, about 8 o'clock a. m. W. A. DANIELS. Witness : W. C. Morrison. United States Internal Revenue, Statesville, N. C, Oct. 28, 1881. Col. A. H. Brooks, Revenue Agent, Greensboro', N. C. : Sir : I have the honor to report that, on the morning of Oct. 24th, accompanied by R. H. Crawford, I visited the distillery of Q. D. Freeze, ^ 1773, 6th dist. of N. C, located near Statesville. This distilleiy sus- pended in June last, and is still under suspension. At the time of our visit we met Mr. Freeze at the distillery. Ui)on examination we found that he had made one mash which was found in one of the stills. This Mr. Freeze at first claimed Avas for his hogs, but afterwards admitted that he had made a regular mash of two bushels of corn-meal to which he had added one-half a peck of malt. He saiogl(! at once comjdied with his re(piest. Upon further questioning, Mi-. Bogle further admitted that he had made two with- -, and that in the meantime the stills and all the whisky in Q. D. Freeze's ware- honse have been stolen, and that this nuuMiing- Mr. Daniels handed the key to Mr. Boyle who returned it to this office, and that it would ap- pear from this that in the first place Mr. Daniels was a messenger from Bogle, and that in the second place that Bogle was a messenger from Daniels returning the key. Am I to understand you this way, gentle- men ?" They all acknowledged that my understanding was (^orrecr. NVe began search for the missing- stills and whisky at once, first get- ting out a warrant for arrest of Q. D. Freeze's, and a search warrant foB the i)remises of W. A. Daniels near the distillery of Q. D. Freeze's. Deputy Coll. Stockton got out the search warrant at my direction, and accompanied us that afternoon to examine the buildings, but nothing was found that afternoon. As the case seemed to implicate several parties, including- officers, I thought best you should be present, and accordingly telegraphed you to come to Statesville. The next morning, in your company, I drove to Freeze's distillery, and found at the distil- lery one J. C. Barclay, a bondsman of Q. D. Freeze's. Upon informa- tion obtained of him we returned to Statesville, got out another search warrant, and accon)panied by Mr. Crawford and a store-keeper and gaugei- by name of T. A. Gill, returned to further examine the build- S. Mis. IIG 34 530 COLLECTION OF INTERNAL REVENUE IN ings and gTouiid of W. A. Dauiels. By using iron rods in probing the ground in a I'reslily i)]o\yed tield near tlie liouse, we were soon rewarded by finding the wliisky buried in a gully running tlirougli the lot at vari- ous depths underground. We discovered there seventeen packages out of the nineteen that the warehouse books showed were in the ware- house. The seventeen packages contained seven hundred and thirty gallons of spirits. We procured teams and had the seventeen packages removed to Statesville and stored in a cellar used for such purposes under the collector's oftice. The same day the tax was ]>aid on all the spirits stored in the two warehouses belonging to the two distilleries that were run in the name of W. A Daniels, viz., G4G and 1003. Said vSl)irits were removed to Statesville and stored in the warehouse of Pinkus & Co. Soon after its arrival there we went in and caused its tU-tention, having reason to believe that Daniels was the real owner of Freeze's distillery, and that Freeze was simply a tigurehead. We feared i\ rescue of the spirits might be attempted; but up to the time of your leaving on the midnight train to return to Greensl^oro' nothing Cad l)een attempted. The next morning I went to the collector's office and directed Deputy Coll. Coite to seize the two distilleries of W. A. Daniels, No. 040 anrl 1003, as well as the nine packages of detained spirits in warehouse of Pinkus and Co., detained by us last night. He at once took steps to do as i requested, and seized the following property : 6 copper stills, caps, piping, and fixtures. 3 bbls. of spirits, (about 60 gallons.) U " " gin. I " " spirits, (about 10 gallons.) (The three and a half barrels of spirits, and one and a half barrels of gin were found in an outhouse in rear of dwelling-house on Daniel's premises near the distillery.) Ten Ims. rye and fifteen bus. of meal in the distilleries, 480 gall's beer, 60 gall's singiins destroyed. During the forenoon J. C. Barclay, the Leretofore-mentioned bondsman of Q. D. Freeze's, came to my room and said he knew where Freeze's was and could produce him at any time. At my suggestion he went to Freeze's and advised him to surrender himself to the commissioner; Freeze's did so, and is held in $250.00 bail for his appearance on the 28th day of November. The date was fixed at November 28th to gi\e me time to work ui» further evidence against Daniels, and also to suit convenience of dist. att'y, who, 1 understand, Avill be engaged at Ash«>ville court until about that time. I then i)ro- «,'e(Mled to get out a warrant for the arrest of W. A. Daniels. In examining his house in Statesville for him we found the following ]»roperty : 4 <;()j)j>er stills and fixtures com[)lete. 2 extra worms. 1 ])nm]) and pi]nng. .3 s(*j»arat«'rs. Two of the abo\(' stills are o\iniird on the jinniises of W. A. Daniels, I found value i)laced at 20 THE SIXTH DISTRICT OF NORTH CAROLINA. 531 cents i)er gallou above tax. I thought that too low according- to pres- ent market value of the goods, and so told Mr. Coite. He insisted that it was a fair valuation, and was not inclined to have it changed. 1 did not argue the matter with him, but gave him to understand that I did not tliink it a fair vahnition. When he furnished me a copy of ai)praise- ment, at my recpiest, I found tliat appraisement had been changed to 40 cents per gallon above tax, instead of 20c. The copy of said second appraisement is herein inclosed. After above developments, upon vis- iting the collector's oflice, we were shown by D. Coll. Coite a coj^y of a statement made by W. A. Daniels, evidently ior the purpose of clear- ing Store-keeper and Guager W. G. Bogle from complicity in above mat- ter. Said copy I herein inclose. I have no confideuce whatever in W. G. Bogle as store-keeper and ganger, and believe he has been acting as a spy upon our movements in interests of W. A. Daniels, and would respectfully recommend his immediate removal. W. P. A. White, store-keeper and ganger at distillery i^ 046, of W. A. Daniels, is a brother-in-law of said Daniels. While 1 have no evi- dence of his complicity in helping to remove the whisky from Freeze's warehouse, yet, from remarks made by him, am led to believe that he knew of its removal at the time, and also knew of its whereabouts. I would respectfully request also in his case immediate removal from duties as store-keeper and ganger. The witness to statement made b}^ Daniels relating to key of ware- house of Q. D. Freeze's, herein inclosed, is also a brotber-in-law of W, A. Daniels, Throughout above transactions I have received valuable information and aid from Store-keeper and Ganger T. A. Gill, now unassigned to duty. I believe him to be a faithful and efflcient officer, and would respectfully recommend his immediate assignment to some distillery now in operation. Mr. Gill's name will again appear in a report I am about to make re- lating to bargains between the distillers and store-keepers and gangers of this district. By to-morrow morning I expect to have evidence upon which I can direct seizure of the teams that were used in reuioving spirits from Freeze's warehouse, if they are to be found, Yerv respectfullv, EDWAED McLEEE, Bev. Ag't. No. 720. United States Internal Ee venue, Greenshoro\ iV^. 0., Jan. 18, 1882. Hon, Green B, Eaum, Commissioner of Int. Rev., Washington, B. C: Sir : Eeferring to your letter of the 10th inst., initials O. F. D., Ch., and W, T. C, inquiring what has been done in the case of Q. D, Freeze and W, A. Daniels since your letter to me of the 11th inst., I have the honor to rei)ort that 1 have not received the letter referred to. There has been no further action taken since Daniels and Freeze Avere held for the action of the U. S. court. We have procured additional evidence against Daniels, and I am satisfied we shall be able to convict him. I have the honor to transmit herewith copy of form (117), on tile in the 532 COLLECTION OF INTERNAL REVENUE IN U. S. attorney's office here, in regard to the seizure of nine packages of spirits removed Oct. 27 from W. A. Daniels' distillery warehouses, while we were engaged in digging up the 17 barrels of spirits stolen from Freeze's warehouse by Daniels on the night of Oct. 25th. The form (117) on file in the U. S. attorney's office is in Chief Deputy Coite's handwriting. I would especially call your attention to the pains taken to prepare the defense in this case. Very respectfully, A. H. BROOKS, Revenue Agent. ISo. 922. United States Internal Eevenue, Greensboro', '^\ C, Apr. 24, 1882. Hon. Green B. Eaum, Commissioner of int. Rev., Washington, I). C: Sir : Referring to the charges against Deput;s' Collector J. C. Sulli- van, Oth dist. X. C, preferred by one Jas. C. Miller, a distiller in said district, and which charges were referred to me for investigation under date of the 17th inst., I have the honor to report tliat the papers in the case, which are herewith returned, were received by me while attend- ing U. S. court at Statesville last week. The charges made by Miller are the same charges that were made by one John Shores, jr., and which were reported on by Revenue Agent Harrison, under date of Jan. 24, '82. Mr. Sullivan's statement, under date of March 3d, explaining why Miller's bond was not forwarded by him is, I believe, correct, as well as his statement regarding the survey of Shores' distillery. In regard to his not sending a store keeper to Miller's distillery, I un- derstand that Mr. Miller insisted on Mr. Sullivan recommending the ai)polntment and assignment to his distillery of a certain man, which ]\Ir, Sullivan declined to do for the reason that several distillers had UKule ap])licati()n and were anxious to have the same man assigned to their distilleiics, and it was generally understood that this man had agreed to divide his pay with the distiller at whose distillery he should be assigned to duty. I made inquiry of some good citizens of Yadkin County, who were attenlaints can l»c niad<; in relation thereto. THE SIXTH DISTRICT OF NORTH CAROLINA. 535 No. 5. — Stdtement shoiviiij/ condition of office of J. J. Mott, collector iitk (Ustrict (f North Carolina, at the close of Imsine.ss hours on the 12th of yovemher, 1877. Examined by Jan. C. Wheeler. (Table accoinpanyiiig, etc.) Owiii^' to tlie large number of fruit distilleries iu this district, the clerical work iu the ofitice is very heavy. The office is iu good condi- tion, and the employes, so far as 1 saw. are competent and energetic. The large extent of territory comprising the district and its mountain- ous nature, requires a good force of employes to prevent frauds, and give the business proper sui)erVision — I think the collector is using his best endeavors to keep his district in good condition. No. 7. — Statement showing condition of office of J. J. Mott, collector of the Gth district of North Carolina, at the close of business hours on the dth of Sept., 1878. Examined by J. R. Hale, rev. ag't. (Table accompanying, etc.) REMAEKS. Every notable merit or deficiency observed by the examining officer should be reported. Sixth District, X. C. I found the stamp account and the sales record in very good shape. The same cannot be said, however, of the lists, the unsatisfactory con- dition of which will be seen by reference to the special report herewith. I do not know that it is possible to collect, in all cases, the class of as- sessments shown, which are mainly against distillers. But this, if true, ought not to entirely excuse the officers from taking the proper steps to dispose of them by causing claims to be prepared for the abatement of erroneous assessments, and by referring the remaiuder to the dist. at- torney for his action. Another deficiency observ^ed by me is the very general neglect to col- lect penalty and interest on assessed taxes when not paid within the prescribed time. The reason given me was that it is almost anim- possil)ility to collect the bare amounts assessed, and to add penalties thereto would, in most instances, prevent the collection of the tax. This may be true, as to this section of the country, but the law seems to al- low no discretion whatever to the collector iu such cases. I was very favorably impressed with Collector Mott, and regard him as the proper person to occu])y that position in a district so peculiar, in many respects, as this. He is very earnest in his desire to break up the illicit distillation of spirits, and almost his entire time is given to that work. If it is possible to excuse the shortcomings of officers, in com- paratively minor matters, I think that this is such a case, and there- fore I do not grade the office as low as I should otherwise do. 536 COLLECTION OF INTERNAL EEVENUE IN Ko. !>. — Statement shoicing condition of the office of J. J. Mott^ collector (jtit district of North Carolina, at the close of business hoiirs on the Sth day of February, 1879. Examined by Chas. P. Brown. (Table aceompaiiyiug, etc.) REMARKS. Every notable merit or deficiency observed by the exaniiiiiug officer should be reported. The alphabetical list of special taxes is written up from the daily rec- ord at end of month. January, 1879, sales not entered. The ledger account of stamps sold to tob. m'fr's is nmde up at end of month. January, 1879, entries not yet made. The entries are made continuously without leaving any space at end of month, or footing- sales for each mouth. The record now in use by the collector is suitable, and a new one will not be needed until this one is filled. Bonds are informal in that they do not in all cases have the Cliristian names of signers written in full in the body of the bond — and so signed thereto — and in a good many cases the residence of signers is not stated. Some attention has been given to the collection of penalties and iu- tert'st on taxes in the last two months. Olfice hours are from 9 a. m. until dark, and some of the clerks do con.siderable work at night. Remittances to tlie depository are made in even thousands. The trains leave the station at 2 p. m., and cash to go away has to be made up early in the day, and money coming in later often makes over $1,000 on hand at close of business. As the collector has only a fairly secure safe, and burglaries are fre- queiit, it seems to me he should be authorized to send all his money on hand at the hour the rennttance is made up. The allowance for office rent, $100.00, is not enough to secure such ac- commodations as the office sliould have. GENERAL SUMMARY. J am of the o])inion tliat all the nuiterial- interests of the government are yell looked after iu this district. Collector Mott seems to me to be just the man i'(;(juircd for such a district as this. The office accommodations are not good by any means, and the office is not tidy or orderly. In a more commodious and convenient office, with good desks and ])laces for books, blanks, and files, this would be uiid(»ul>tedly improved, and with i)rescnt accommodations should be iiii|tio\('(l. I think ('oilcclor .Motfs nninagemcnt of the outside alfairsof his dis- trict, as J undcjstand it, admirable. (Jra(h' of oni(;e, as ]M'rs<;ale of merit, ]S'o. 2. ]{('spcct Ciilh snl)niil t('(|. (JllAS. P. lUiOWN, yl(/ew^. STA'I'KSVILI.E, Feb. U, '79. THE SIXTH DISTRICT OF NORTH CAROLINA. 537 No. 20. Table accompany ing' the original Form B, for quarter ending June 30, 1870. Eemarlcs of the inHpeciiny officer. Deputy (t. W. Williams answered all questions relating to the duties of a division deputy in his division. Is an efiicient and popular ofhcer. Has the (jounties of Buncombe, Henderson, Transylvania, Haywood, and Madison. Dep'y F. P. Axley also has a large division, conq)osed of the counties of Cherokee, Graham, Swaine, Clay, Macon, and Jackson, and has shown considerable impovement in his familiarity with the int. rev. regulations since last examination. Dep't M. W. Jewett, assigned to ^Gaston and Cleveland Co's. Is an cliicient, capable, and honest officer. Has abont 40 bonded distilleries to look after in his division. Dep'y J. A. Lillingiin has the division composed of Polk, Rutherford, and McDowell Counties. Is an active and efficient officer in the discharge of the regular duties of his division, and has been most energetic in breaking up illicit distilleries and trying to prevent fraud in his division. Dep'y W. J. Bailey has the division composed of Union, Mecklenburgh, Cabarrus, and Rowan, has become familiar with the duties by long ex- perience, and makes a good officer. Dep'y J. Q. A. Bryan has the division composed of the counties of Alleghany, Ashe, Watawga, Yancy, and Mitchell, in which there are about 150 fruit distilleries. Like Deputy Bailey he has had much expe- rience, and is an excellent officer. Has been very successful in obtain- ing information against illicit distillers wherever he has been assigned. Dep'y J. C. Sullivan has been appointed during the quarter, from position of st'k. and g., is making a very good division deputy. Dep'y W. H. Hobson has division composed of the counties of Burke and Caldwell. Is an active and faithful officer in a division which is hard to control. Dei>uty A. B. Gillesi)ie is an honest, capable, and efficient officer ; lias a knowledge of his duties which he has acquired liy study and ex- perience. I am constrained to add in respect to the sobriet;^' of the deputy col- lectors, and officers generally of the district, that I do not know of one addicted to intemperate habits. It is a rule of the collectors to dis- charge any employefor drinking, audit has become so well established that it is rarely violated. Very respectfully^, W. H. CHAPMAN, Rev. A(jH. Note A. Answer to question 14 (Form B). — Illicit distillers in Swain and Graham Counties, Have used all means and made every effort to sup- IH'ess them at my command. Are situated in remote places in the mountains, and it is difficult to get guides. F. P, AXLEY, D. Coll. 538 collection of internal revenue in United States Internal Kevenue, Dep'y Collector's Office 0th District, North Carolina. XOTE B. Answers to questions 13 (Do you know of or have you reason to sus- pect the perpetration of frauds in the manufacture or sale of spirits, malt liquors, tobacco, or cigars in your division '?) and 14 on Form B. Statesville, X. C, Jidij 1, 1879. Col. W3I. H. Chapman, U. S. Int. Kerenue Agent: Sir: There have been and no doubt are now in the counties of Al- leghany and Ashe illicit whisky distilleries in operation. They are not operated constantly, but occasionally, and at different points. In the eastern end of Alleghany County, near the Virginia line, two dis- tilleries have been operated, and one of them is said to be in operation now. Warrants are in the hands of the deputy marshal for their ar- rest. This distillery is being operated by Gilbert Edwards and Phelix Edwards. There is another distillery operated in the vicinity of Laurel Springs, Ashe County, by a notorious set of men by the name of Woody ^ and on Horse Creek, about 10 miles north of Jefferson, is another, operated occasionally by a man b}' the name of J. Miller, and farther north, near the Pond Mountain, in the roughest portion of the county, there are others operated, but the parties I do not know ; but will as- certain their names soon, and take steps to have them brought to justice. These distilleries cannot be seized without a small force. One or two men would be resisted, in my opinion. I am also informed that whisky and tobacco is being transported from this State by wagons and on foot to Va. ] but I am not able to give the names of the parties thus engaged, but hope to overtake them soon. Any information that I may receive in the future touching those frauds will be promptly re- l^orted. Kespectfully, J. Q. A. BKYAN, Deputy Coll. Note C. In the Soutli ^Nroiintains of Burke County, I believe there are a good many illicit distilleries now running. We captured and destroyed last month or .S of them. I have information that there is also 8 or 10 in Caldwell (Jountv, which we h()])e to be able to attend to at an early day. Veiv r<'S|»('<;tfiillv, W. H. 1 1 OB SON, />. Coll. Hth Dir. of i\th JH.S. N. 6\ THE SIXTH DISTRICT OF NORTH CAROLINA. 539 No. 5. United States Internal Eevenue, Morganton, Sept. 20tJi, 1877. (Table accompanying the original.) In reply to (juestion No. 4 (Form C, report of an inspection of officers in the Gth district of X. C, 27th Sept., 1877), " Bo you ever gauge, mark, and stamp casks in advance of their being filled f Eelative to gauging, I would say, that on the day of gauging spirits for entry into warehouse, I first weigh the spirits in the cisterns, cor. val. of same; then I gauge the barrels, brand and affix the D. W. stamp, and immediately thereafter I fill such barrel out of the cistern in which the sp'ts have been weighed, &c. H. W. MOOEE. United States Internal Eevenue, Monjanton, N. C, Sept. 26th, 1877. Sir : In reply to question No. 19 (Form C), " Do you know or sus- pect the perpetration of frauds in the manufacture or sale of spirits in your division f We would state that we hear frequently of illicit distilling and traffic in whisky, and have reported the same to the collector from time to time, and shall continue to do so whenever any information comes to us. The section where we reside is known to be infested by violators of the law, but they are naturally wary, and avoid us as nuich as possible. Eespectfully, E. A. COBB. H. W. MOOEE. JOHN CAESON. C. C. JONES. J. E. BALLEW. United States Internal Eevenue, Dep'y Collector's Office, District, N. C, Sepfr 27th, 1877. Major Jacob Waoner : Dear Sir : In answer to question 19 I have to say, I have no per- sonal knowledge of any blockading going on, but have reason to be- lieve there is some illicit distilling going on in Wilkes County on Hunt- ing Creek. I heard a distiller say the other day he was satisfied there was 20 illicit whisky distilleries going on in four miles of his house. I am satisfied there is much less going on now than was a few months ago, and unhesitatingly say I believe the collector has done all in his power to suppress it. Eespectfully, C. S. COOK, S. and G. United States Internal Eevenue, Se^yt. 21th, 1877. Maj. Jacob Wagner — to question 19. Sir: I have reason to believe that there is violations of the int. rev- 540 COLLECTION OF INTERNAL REVENUE IN enue in my county, Wilkes, by a number of persons in the distillation of wliisky. There has (been) great efforts made by the collector, Dr. Mott, to sujjpress it, but owing to the roughness of the country he has been unable to do so, but has suppressed a large number of them. I ha^e no personal knowledge of the facts of the immediate location of the distilleries. Eespectfully, J. B. SIMONTON, Stoi-^k. and Gaiujer. REMAEKS OF THE INSPECTING OFFICER. The illiterate character of the population, and the rugged character of the country, renders it difficult for Collector Mott to secure the serv- ices of gangers fully competent, and possessing the highest qualifica- tions at all times, but the officers herein embraced are generally well informed as to their duties, and appear to be a good class of men. There are none among them whom I would reject, as far my knowledge goes. JACOB WAGNER, (Tabular statements accomi^anying the originals. Revenue Agent. No. 0. United States Internal Eevenue, Asheville, N. C, Nov. Sth, 1877. (Table accompanying the original.) Sir : In answei' to (piestiou No. 19, 1 would state that I have heard of illicit distilling going on in the State of Georgia near where I am assigned to duty. It is in the counties bordering on the N. C. and Georgia lines. The distillery to which I am assigned to duty is near the Georgia line. ltes])cctfullv, G. AV. CANNON, U. S. Gamjcr and Stlc'r. .Mr. .Iacoi! Wagner, (J. iS'. licv. Afjcnt. UNiTi;i) Statics Jntjornal IvEVENUE, Asheville, Nov. dth, 1877. N(». II. — Stiilc prooi" giills. in v.ich warclionsc under your charge at this (hitc, Nov. Sill. No. 1.'}. — How many wit hdraw ills made in hist month ? I>i:ai.* Siij : In nnswri- to ;il»o\-c in(|uirinties, has, I think, hae done when the lu'eseiit cro]) of corn is galiier<'(I, \n\\ am im])ressed liiat there will b<^ l(\ss illicit traffic than lias Im-cii usual. ,1. i;. KAVES, Ih-jK Coll., llh Dir., (\lli />ist. K C. Nov. IL', I.S77. THir SIXTH DISTRICT OF NOETH CAROLINA. 543 United States Internal Eevenue, iStatesville, Nov. lOth, 1877. Sir: In answer to <]nesti()ii 5tli, on Form B (Are you familiar wiih the books reciuired to he kept by the various manufacturers and deal- ers required to keep books ?) I would state that 1 have been in the service but a few days, and am making myself acquainted with the various details of my duties as fast as possible. Kespectfullv, FEAXK DAVIS. Maj. Jacob Wagner, U. S. Revenue Agent. REMARKS BY THE INSPECTING OFFICER. Wm. J. Coite, deputy collector, in charge of a division composed of I'harlotte City, and county of Mecklenburgh, but resides in Statesville, in Iredell County. He has been long in service, and is an efficient and capable officer. A visit to his division shows several irregularities in the cigar factories, and among the retail and wholesale liquor dealers, some of which have since been remedied. Mendall & Co., cigar manufacturers, keep their stamped and unstamped goods in the same room, only a rail intervening, and are not sup])lie(l with the regula- tions. J. W. Hul)bard & Co., have no regulations, and have not regis- tered the names of their cigar-makers. John M. Morrison was whole- saling spirits under a retail si)ecial tax, and Miller & Leak, tobacco manufacturers, are not supplied with the regulations. M. W. Jewett, deputy collector 9th division, composed of Haywood, Jackson, and Transylvania Counties, in which the fruit distilling sea- son is over, leaving but little work in the division, besides that incident to the single grain distilling it contains. Mr. Jewett is an officer of fair qualifications and good character, while his knowledge of the law and regulations is not as thorough as might be. Ct. W. Williams, deputy collector 8th (livision, composed ot Madison, Buncombe, and Henderson, is a nnm well suited for the class of work in his division, while he is not as thoroughly educated and acquainted with the law and regulations as he should be to make a first-class of- ficer. Much of his duties pertains to illicit distilling. His standing, char- acter, and morals are good. John B. Eaves, deputy collector 7th division, composed of Polk, liutherford, and Cleveland Counties, has very little duty except such as pertains to the illicit distilling, which is very prevalent in his division. His territory is contiguous, and not very extensive, and he should be able to suppress it with the aid he can occasionally secure from the raiding force allowed the collector. He is capable of performing the usual duties of a deputy collector, is a man of good standing and char- acter, but I do not consider him very active or efficient. G. H. Brown, deputy collector, has charge of the sale of stamps in the collector's office, and is an honest, intelligent, and efficient cashier and clerk, but his knowledge of the general duties of a deputy collector are limited, as well as his information in the law and regulations. His moral character and standing are good. C. F. Collier, el'k, is on duty in collector's office. He was appointed on the 1st of OL-tober last, and is consequently inexperienced and not 544 COLLECTION OF INTERNAL REVENI^E IN well informed. His qualifications are ordinary, and I am not impressed with tlie opinion that he will make a good clerk. His character and standing are good. J. Frank Davis, clerk, was also recently appointed, is inexperienced, but possessed of fair qualifications. His standing, character, and liabits are good. A. D. Cowles, special deputy collector, was removed from office the dav after mv inspection on a(;couut of drunkenness. JACOB WAGNER, Revenue Agent. XoTE. — There were several of the deputy collectors in this district absent on raiding duty, whom I could not see for tlie purpose of in- specting. No. 21. Report B of an inspection of oncers in 6th N. C. collection district, Dec. 31, '71). (Tabular statement accompanying the original.) Foot-note. — The deputy collectors in this dist. can be characterized for sobriety, and for attention to duty I dare say will compare favorably with anv in the service. W. H. CHAPMAN, Revenue Aift. REMARKS BY THE INSPECTING OFFICER. Deputy Coll'r Bryan examined Sept. 12th at Morganton. Deputy Devine examined Oct. 29th at Statesville, is well informed, answered the gen'l and all questions relating to special taxes, distilled si)irits, tob. fa(;cories, and cigars, promi)tly and satisfactorily. I should rate liim to be a good officer, one of the best in the dist. Deputy Collector ilailcy examined Oct. .'U)tli, at Statesville, is well informed in the duties ))ertaining to his division. The questions were not answered so ])romptly as might be, but embarrassment seemed an impediment. I siiouhl rate liim as a good ollicer. Dc^puty Williams answered (luestions relating to special taxes, and is right well informed as to tlie duties to be perfornunl in his own divis- ion. Is an a(;tive oflicer and takes interest in ])erforming his duties. ])ei)Uty Axlcy is in a very inac(;essil>le ])oition of the (list, and sur- rounded with diniciillies. Is not so well ])ost('d iir the general duties as lie might be, l)ut i»robably is as useful a man for tlie position as could be foiiiid. Dcp'ty ( 'oli'r ricwct t answcrcil ;ill (jiicslions pcitainiiig to the duties of flcpiit \ collci'toi' ill ills (li\ i.sioii. lias Ix'cii a (l('i)uly I'or some time, and is well jtostcd. i)('l>'ty Coll'r . I. 15. Mavcs, I Ibiiiid well iiilbniicd as to tlu^ duties of a dcp'ty (;oirr; is ipiiti' popular in his di\isi()ii ; has Ix'cii recently elected to the State, senate; an uin'-oiimioii occurrenc«^ in this dist. lor one who is ])oth a liepiiblicMii and a I'evciiuc oni(5er. THE SIXTH DISTKICr OF NORTH CAROLINA. 545 Deputy Coll'r Gillespie is a well iTifoiined, active, andetili(;i('iit officer. Respectfully submitted by W. H. CHAPMAJiT, Rev. A(jt, No. 1. United States Internal Eevenue, Statesville, iY. C, April 2G, 1880. Sir : Having supervised the inspection of the distillers and exami- nation of the officers, found both on and off" duty for that section of Gaston County, 0th district of North tJarolina assigned me, I have to report that the work has been completed and your instructions carried out. Upon an examination of the distilleries visited, it was found that they are all constructed very much after the same plan, and that the officers are all doing business much after the local j)revailing custom ; that where an error was discovered at one it was generally discovered at the others, with an occasional modification. The officers, as a class, were found to be plain, unassuming natives, with few of the eajiy advantages of education, but possessing a desire to be instructed, in all that pertain to their duties. They have a fair mechanical knowledge of gauging, but appear to know but little of the theoretical part. A want of education in many instances, and especi- ally a want of knowledge of deciuial fractions, rendered it difficult to impart a proi)er understanding of a correction to volume. No discovery was made leading to the supposition that willful neglect or fraud existed upon the part of the offisers ; where errors were found they appeared to be more that of judgment than of intentional wrong. While it is true that a few of the officers examined cannot be regarded as first class, yet with a practical application of the instructions given them, it is believ^ed that they may be generally relied upon to do the work at these small distilleries. As the distilleries themselves appear to be a compromise between a legal and illegal process, so it may, upon these general principles, be extended to the officers. The discrepancies found to exist in the proof as established by the original, and determined by a regauge, may be traced to the foUowiug causes : 1st. The reuse of old casks and the soaking of the same in water be- fore being tilled. 2d. Reading the indication by taking the line above or nearest the surface of the spirits. 3rd. Filling with spirits at a higher proof than is marked on the cask in order to compensate for the water absorbed. 4th. The use of hard water and the necessarily slow and imperfect assinulation of the same with the spirits. The differences in the wine-gallon gauge may be briefly referred to as — 1st. The erroneous manner in which they are in the habit of touching the extreme point of the mean diameter slide in obtaining the bung diameter. 2nd. in some instances the officers ascertain the head diameter with S. Mis. 116 35 546 COLLECTION OF INTERNAL REVENUE IN the rod perpendicular instead of the diagonal inclination of tlic same across the head. The following irregularities were noted and believed to be general, and are reported for your information. ' The faucets and openings to the receiving cistern are not locked ; the i)ipes do not appear, with one exception, to have been painted, but few of the furnace-doors are capable of being locked; the distiller's books and reports generally written by the officers on duty ; but few of the gaugers have the prescribed wantage rod; none of the officers liave the advanced sheets of the new capacity tables ; there is no sac- charonieters in use, and hence the temperature and gravity of the beer is not taken and recorded as the regulations direct; there is no flooring to the cistern-rooms, and it is the custom to weigh the material «.s*ec/ each day, and not the amount received upon the distillery premises. At distillery Xo. 1327, owned by G. W. Gambles, it was noticed that tlie cistern-room had a large crack in it, through which spirits can be extracted while in flow from the pipes to the cisterns ; that the ware- house had openings, between the plank of which it is constructed, huge enough to insert an auger, and that the casks were in close con- tact with the walls; that the large wantage in one cask gauged, with a small hole in it, had a suspicious ajjpearance, all of which should be corrected. The thermometer at this distillery was condemned by Ganger Blackstoiie, and it should be substituted. At the distillery of A. M. Rliyne, No. 1202, it was noticed that many of the warehouse stamps had not been varnished; that one cask had been warehoused with old marks and brands on the same, and that no new marks had been placed tbereon by the ganger; and that on an- other cask found in warehouse with new wharehouse stamps, the officer had failed to totally destroy the rectified stamp, which was still re- maining on the head of the same. At the distillery of D. W. Mitchem the officer had not been in the habit of varnisliing the warehouse stami^s when affixed. Ganger Beasley, visiting the distillery of II. F. Forbes, Xo. 1301, found tlie store-keeper and ganger, G. W. Setzer, absent. He left the distillery on the 21st inst., to be absent until the 20th iust., leaving the keys in the i)ossession of a man designated, as was understood by the officer himself, and without the knowledge, so far as could be as- certained, of the collector. Tlie books had not been written up from tlie diiite when the officer left to the date of (ranger Beasley's visit. A1; the distillery (»f F. F. Sumney, No. 13S3, the top of the separator was found broken off, and it had been in this coiKlition about three we *ks. I would suggest a more fre(|uent change of the store-keepers and gangers from om^ (listiUery to another. The intimacy that is sure to be established between the ollieer and distiller ean only be broken in this way, and in Ihis district it isthonghl that it would work bi'ue- licially. As the lawliil custodian of the keys, it a])pears that some of the olfi cers liave not heretofore ai)preciated the responsil)ility of retaining them in tlieii- )M>ssessioii. This may, in part, ac(;onnt for the manner in which duplicate keys were nnulo in some sections of the district, of which iiieiition was maj t< a .= ^- Name. o o a Si o .■SE ■5 o > i 2-2 32 3 o 73 IB |3 Kemarkp. C a o M a o Is he fami duties o d 1 3 £5 as .a 1- IB o ja IB .13 46 W n w Liin- Tem- None . to M M K. .7. Kennedy. Kiii(;'M 1 1 iiio'h I'ar- Yes No.. Yes. Found store- .Mt.,N. tiaity. it<.(l. perate. keeper using , i.s ac('onnteut to report jnst as lonnd. N. K." IIKASLEV, U. iS. (J auger. THE SIXTH DISTRICT OF NORTH CAROLINA. 551 E. — Rcpoti of examination of gangers and store-keepers in the (>//( district of Xortli Carol ruif made l>ij Titos. Hewson, April 2'.id, 1880. Name. Residence. How long in service ? Is ho t'aiu'liar with the du- ties of his ofhce .' Is he attentive to duty .' S. P. Sherrill .T years 5 months Yes for the oppoi-tiiuities he has liad. Xo Tes. J. F. Munday 38 Denver, Lincoln Co... I found liim on duty. Name. Education. What are his per- sonal habits ? Temperate Temperate What -was his I« J^^ f"" military serv- fff^^ busiiits.s? Is he fit for position held ? S.P. Sherrill Fair No No a years pri- , No vate in the so-called Confederate army. 1 Yes. J. F. Munday Fair No. Eemarks. — S. P. Slierrils, store-keeper aiid ganger at distillery No. 1315, is a good man, and witli the instrnctions given bini will make an efficient officer. He had the old instrnction in nsing" the rod and reading the stem, which was entirely wrong. J. F. Munday, store-keeper and ganger at distillery Xo. 1320, B. M, Carpenter's is a one-armed man (I think he has lost the left arm ; he said in the so-called Confederate army.) He is incapable of using the rod, and does not understand it. The gauging that has been done in the distillery since his assignment there has been done by the distiller- THOS. HEWSON, U. 8. Ganger. GENERAL REMARKS. The selection of officers by the Hon. collector. Dr. J. J. ]Mott, has been men of intelligence and sobriety. Their instructions have been limited; what they have received was wrong. They uniformily read their rod at the largest place of the head, always taking the measurement of both heads and dividing the differ- ence at the largest and smallest place found ; they always try to make the package as large as possible. In reading the hydrometer they always read the line they see. They know nothing about i gallon in capacity ; when it is found they call it a whole gallon, ''as the taxable gallon must be a whole gallon," and so mark it on the bung stave. I have not found one of the officers examined by me that understood correction of volume; so they have never used it. Yours, respectfullv, THOS. HEWSON, U. S. Ganger. W. F. Porter, store-keeper and ganger at McAbsher's distillery, No, 1744, had at one time been interested in a distillery ; found him a good 552 COLLECTION OF INTERNAL REVENUE IN man; knew iiotliiug about gauging ; be bad not entered anytbing in tlie waijebouse. Yours, respectfully, THUS. HEWSOX, U. 8. Ganger. Jieport of examination of (jaiigers and utore-keeper^ in sixth district of North Carolina, made hy Thos. Hcwson, , 1880. ifame. Age. Residence. How long in j service ? Is he familiar with the duties of his office? Adolphus Aug. Moss. K. H. Foard A. M. Salmon W. F. Hoots J. F. Hedrick S. D. Brown E.L. Bell T. B. Havnes A. AV. Bell T. S. Call D. R Edwards W. F. Porter 60 32 24 46 28 34 25 25 31 54 28 39 42 Mocksville South River Zion . . . . X-roads Church. Elk Shoal, N. C. Hamptonville . . Hampton ville Jonesville Lai nwood Wilkesboro Roaring River . . . Mulberry, N. C. Elkville,' K C . . . . 1 year . 13 montbs . . . 15 mos . 7 mos . 6 mos . 9 mos . 13 mos . 4 mos . 1 year 1 year . 1 5'ear . 19 days . 1 year, off and on. Yes ; for the opportunities he has had. Yes ; for the opportunities he has had. Yes ; for the opportunities he lias had. Yes ; for the opportunities he has had Yes; for the opportunities he has bad. Yes ; for the opportunities be has had. Yes ; for the opportunities he has had. Yes ; for the opportunities he has had. Yes ; for the opportunities he has had. Yes. Yes : for the instructions he has rfec'd. Has had no practice. Has had but little practice. Name. Is he attentive to duty ? a o rol)al)ly tbe distiller or some one bad retailed onl ol'tbose ])aekag<'S. 1 have r<'ported liini fit tor laee ol" ,1. X. Hays, stoic kecpei' and ganger, ab- .seiii ;itleii(lin;^ eonit ill Wilkes ('oiiiit\ ; bad been absent about one THE SIXTH DISTRICT OF NORTH CAROLINA. 553 week. J. X, Hays, s. and g., had no instruments to gan<^e witli. E found his gauninj;' and jiroof very much out of the way, iangin<; from 1)8 to 10!I proof, nunked 100 i)roof. R. L. Bell, store-keeper and ganger, was on duty at D. L. ».S: B. Shores' distiiU'ry, i^o. 1387, the day I visited tlu^ distillery, April 13, '80; Ai)ril 15, '80, 1 was on the road to Wilkes County, I met him 8 miles from his distillery at a. m. He said he had been home to spend the night. I. B. Haynes, store-keeper and ganger at H. W. S. »&■ Douglass, dis- tillery JSTo. 1237, was sick, he met us and received our instructions. We found at this distillery 47 packages with excessive wantage, .several of the packages we could not insert the bung-slide into the bung hole. These had been reported as gauged by W. F. Hoots and J. H. Hauser, store-keepers and gangers. No. 2. United States Internal Eevenue, Collector's Office, 6 District North Carolina, Marion, April 20, 1880. Col. Ed. McLeer, Hev. AgH : Sir : I have the honor to report to you that I examined and instructed S. H. Flemming in his duties as store-keeper and ganger to day. I found Mr. Flemming to be a man of good standing and influential in the community in Avhich he lives. He was commissioned s. and g. about one year ago and has been em- ployed as such about one-half of that time. He was not well informed in his duties, especially as ganger, but verj- readily understood my ex]»lanaiious. He is not assigned at present. Respectfullv submitted. J. D. EATON. No. 3. United States Internal Kevenue, Collector's Office, 6 District North Carolina, Marlon, April 2!>, 1880. Col. Ed. McLeer, Rev. AgH : Sir : To-day I examined and instructed M. M. Teaguein the duties of store-keeper and ganger. He hacl but very little ])ractical knowledge of his duties officially, but readily comprehended my explanation. lie was commissioned about 10 months ago, has assignment at warehouse of A. Summons (No. 055) containing 10 i)ackages, also warehouse of J, H. Davidson (same num- ber) containing 10 packages. Distillery not in oi)eration for more than a year x)ast. Mr. Teague has no gauging-rod. Respectfullv submitted. J. D. EATON. 554 COLLECTION OF inti:rnal revenue in Ko. 12. StATESVILLE, NORTH CAROLINA, April 2iith, 1S80. Col. Horace Kellog, Int. Bevenue Agent, Staiesville, N. C. : Sir : By direction of the Hou. Greeu B. Eaiim, Commissioner of In- ternal Eevenne, I liad the honor to report to yon for dnty on the Gtb inst., when I was assigned by yon to the temi)orary division composed of the following- connties, viz. : Davie, Deputy Collector W. H. Hobsou, Yadkin, " '^ J. C. Sullivan, Wilkes, " " J. T. Pedan, Alexander, " " W. M. Walker, Ashe and " " J. Q. A. Brvan, Alleghany, " " " with instructions to make an examination of all distilleries in operation in those counties, and to examine and instruct the officers on duty at said distilleries. For that purpose Collector Mott assigned to my assistance the fol- lowing officers: Ganger, Tlios. Hewson, 1st dist. Mo. '• J. A. Barnes, 1st " " " F. Greelv, 1st " Ills. " J. B. Taylor, 1st " " On the morning of the 7th myself and party proceeded to MocksvillCy Davie Co., where we were met by De|)uty Collector Hobsou. The work of the county was then divided so that three parties, of two each, could work simultaneously, and at the same time be within easy reaching distance of each other. Messrs. IJewsou and Barnes made one party, Greely and Taylor another, and ^Ir. Hobsou and my- self the third. The first and second parties were sent to the distilleries that were easiest of access, while the deputy (being familiar with the roads) and I took those that were most difficult to find. Finding this arrangement of my forces to work well, it was continued throughout the other counties. As was to be expected, we found the distilleries somewhat crude and the officer unskillful. The officers, however, seemed to be a good class of men, intelligent and willing to take iristru(;tion. The distilleries were not examined too critically; defects, such as loose joints on spirit ])ipes; fiow-cocks, boxes, and meal boxes locked, but witli hinges so adjusted that the boxes coidd be oi>encks ; insecure cistern-rooms, and the like, were all pointed out and lemedics snggested, which suggestions wei-e (iivoral)Iy recei\ed by the distillers, who promised to carry them out ;it once and make everything tight anarty. To Messrs. Hewson, Barnes, Greely, and Taylor, all of whom are ac- complished officers and gentlemen, I am also indebted for the cheerful, willing, and hearty co-operation extended to me at all times and in all places during the trip. I transmit herewith their several reports. Very respectfully, H. B. BUEGH, Int. Revenue Ganger, on Spe. Duty. THE SIXTH DISTRICT OF NORTH CAROLINA. 557 A. — Statement of nUowances made hij the Sccretari/ of the Tiramiri/, upon the recommenda- tion of the Commissioner of Internal Rerenue for the sijcth dislriel of North Carolina, for deputies and elerks, upon wieieh the followiiKj payments were made: REGULAR ANNUAL ALLOWANCES. Fiscal year 1874. Ajiproved by Secretary, August 8, 1873 : Five deputies if;7, 500 One clerk l| OOO Fiscal year 1875. Approved by Secretary, July 25, 1874 : One deputy 1,800 Four deputies (;^ 000 One deputy 1 ^ vjOU One clerk l,20O Fiscal year 1876. Approved by Secretary, June It), 187.5 : One deputy 1,800 Three deputies 4, 500 One clerk 1^ 200 Fiscal year 1877. Approved by Secretary, September 6, 187G : One deputy 1, 650 Seven deputies 9,-00 Three deputies 3, 300 One clerk 1,000 One clerk 600 Fiscal year 1878. Approved by Secretary, June 11, 1877: One deputy 1,700 Seven deputies 9, 800 Three deputies 3, 300 One clerk i 1, 000 One clerk ' 600 Fiscal year 1879. Approved by Secretary, June 27, 1878 : One deputy 1 , 700 Seven deputies 9, 800* Four deputies 4, 400 Two clerks ." 2, 000 One clerk (jOO Fiscal year 1880. Approved by Secretary, July 2, 1879 : One deputy 1,600 Seven deputies 9. 450 Six deputies 6J 300 Three clerks 2, 850 One clerk . 900 Fiscal year 1881. Approved by Secretary, June 23, 1880 : Two deputies 3, 200 Six deputies ^. 8, 100 Eight deputies.... 9,200 Four deputies 3, 800 One deputy 800 One messenger 300 Fiscal year 1882. Approved by Secretary, June 17, 1881 : Two deputies 3,200 Six deputies 8, 100 Eight deputies 9, 200 One deputy 1, 200 Three deputies , 2, 850 Two deputies 1, eoO One messenger .^ 300 558 COLLECTION OF INTERNAL REVENUE IN t^ •Z88I 'IS qoJBjv o^ 'I88I 'I Anf ■1881 'OS annp o; '0881 'T ^ia£ •088T 'Og annp o» '6i8T 't ^inr •6i8I '08 annj 0% '8i8I 'I ^inr •8A8T 08 »nnp o; 'iiSI 'T -^inr •iiST '08 9nnp o^ '9i8I 't ^inp "9181 08 9nnp o^ ■Si8I 'I Anp •Qi8I '08 annp o^ -^81 'T ^inp •nSI 08 annp oj '^^81 '[ -SiunuBp ■taunuB jada^Bu; o o o o o o o o o oo o O O 3 O O O o o o o »r: I" O C>1 l.'^ rt .-I o ooooooooooooooooooooooooooooooo ooooooooooooooooooooooooooooooo ooooooooooooooooooooooooooooooo nat-'a .3 c t sag o 2 q Oh, « pq S ;:;;pq 2 t^ is THE SIXTH DISTRICT OF NORTH CAROLINA. 559 o o o iSS : o m o o o t.- ■* o in to CD C-1 OS in t-H ffi in t- CO 00 s m n to i '^ oc o o O OS ! O I- ■ o § § § C5 o OS 05 o CO ci • 1 o; CO CI o o i o o § in • o o o o o o un s o OS OS to o CD o o oc o IN • o ■ o s • o o § o o § o . : S in g m o in So " : ^ : ^ '"' c c o o O CO O o o o to o 00 ! o « '• '• ■ oto • ■ c OS OS n o o • CO o 00 CO in • .H Jo ■ • *" '^ '. ^ '- '"' o- o o o o o o o o o o •* •* CO OS o o o o lO oc 1 00 O M OS ^ — t~ C) ^ '"' G s § § . o • §s 5 c o o . LO in 1^ '^ ! '~' ! : s o o o oc o- oc S t- o CO o OS CO ■* o . n—^ -^^~ o v^^-' o ooooooooooooooooooooooooooooooo — ooooooooooooo'?3 01— lOO^rcocci^Tj-oc) ^ s; :r C^ _ £ 5 z z z z z z z o o a -^ p W O Q P cs > fc = s. li te - s = P p^ajSntu 3" -5 ^ b « OK S K 560 COLLECTION OF INTERNAL KEVEXUE IX •S881 18 qoJBK 0% '1881 'I A'lnj .-I o » •I88I '08 annp o; '088T 'T ^P^r I— I CO CC V3 •0881 '08 9tinp o; '6i8I '[ ^'inp •6i8I '08 antij oi '8i8i 'r ^'i^r •8181 '08 annp o; 'ii8I 'T -^Itir •ii8T 'OJS anni* o; '9i8I 'I -^liif •9i8T OS 9m»r o» 'Si8X 'X Anr ■SiSt '08 annp 0? 'tiSl 'T i'pr •ti8l '08 onnf o^ 't-iSl 'I ^-renmip •mnauBJoda^Ba; oooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooo o»oicoooioic»oomu^»cooioooicicoioiooooooo»cir3iooirtmo fHOMOO«DO>050»-l»Of-HCOCCO-^CCOC^O^:C'Of-HC^O'^lft05i-lOr-lCOi-t^r-nr: '^ 'U 'C^ 'O P £■&•=' ;^ ^ ^ ^ p p - o a.^- 5 S=:is THE SIXTH DISTRICT OF NORTH CAROLINA. 561 Statement of tin- alloivtoicrs made hi/ the Secretdri/ of thr Trcaftitri/, upon the rrcommenda- tion of the Commissioner of Internal Bevenne for the sixth district of North Carolina, for special deputies employed in the suppression of frauds in manufacture and sale of sjyirits and tobacco, ujwn ichioli the foUowiut/ 2)ayments ivcrc made: Sri-X'IAL ALU tWANCKS. Fiscal year 1874. Approved by the Secretary: One special deputy .fl, 500 00 Fiscal year 1875. Approved by the Secretarj' : Oue special deputy 1, 500 OU Fiscal year 1876. Approved by the Secretary : One sjiecial deputy 1,500 00 One special deputy ~ 1,200 00 Fiscal year 1877. Approved by the Secretary : Seveu special deputies *2, 051 35 Fiscal year 1^78. Approved by the Secretary : Eight special deputies, July to December 2,400 00 Eight special deputies, from October 15, three mouths 3, 000 00 Eight special deputies, from January 15, three months 3, OOl) 00 Eight special deputies, from May 1, two mouths 2, 000 00 Fiscal year 1879. Approved by the Secretary: Eight special deputies, for three months, from July 1, 1878 3,000 00 Seven special deputies, for four months, from September 1 I „ r^„ ^,, Eight special deputies, for three mouths, from October 1 ^ ' Fifteen special deputies, from March 15, 1879, to April 30, $125 per month 2,903 25 Additional special deputies, from August 26 to November 30, 1878 670 50 Fiscal year 1880. Approved by the Secretary : Fifteen special deputies, two months, from October 15, 1879, $125 per month 3,750 00 Fifteen special deputies, from December 15, 1879, to January 31, 1880 2,812 50 Fifreen special deputies, for two months, from February 1, 1880 3,750 00 Fifteen special deputies, for tifteen months, from April 1, 1880 937 50 Fifteen special deputief", from April 16 to June 30, 1880 4, 637 50 Fiscal year 1881. A^iproved by the Secretary : Fifteen special deputies, two mouths, July 1, 1880 3,750 00 Five special deputies, from August 16 to November 30 2, 197 58 Fifteen special deputies, three months, from September 1, 1880 5,625 00 Fifteen special deputies, for three months, from December 1, 1880 .. . 5,625 00 Five special deputies, for three mouths, from December 1, 1880 1,875 00 Fiscal year 1880. Approved by the Secretary : Six special deputies, November 1 to January 31, 1882, at $100i»er month 1, 800 CO S. Mis. IIG 36 562 COLLECTION OF INTERNAL REVENUE IN •SSSI'IS^OJI'K 0? 'I88I 'I -^'i»r o o o ft 2 2 CO « = •I88I 'OS annp 0% '0881 'I -i'lui" o p o o 187 50 250 00 875 00 298 40 1, 000 00 £1 O o o ,9 o o o oin o in o to o ^§^§ cc = r: ci o o o o o o to m -< CJ o to C4 g g CI •0881 'Oe aniif 0+ '6i8l 'I ^i^r s o o CD o XI o o to CI s a; m o 187 50 1, 006 05 375 00 68 55 652 50 o o o o C4 o o in oin m in t~ CO CO -f o • o • in • •6181 '08 annp o; '8181 'I A'lup 1 o o n o CI o CI o = o CI CI 30 » o 00 00 o in ■■o CO CO cc o m •8181 'oe anup Oi '1181 'I ^in£ o o o o C_l O = ?J -1 p i TT ^ ^ C C5 C5 CO 00 to CO •list '0£ annp 0^ '9181 "1 -^inp o CI '^ 700 97 470 60 126 84 54 93 to o 00 •9181 '08 antif 01 'S18I 'I -i'lnr -: •2181 'OR annf o; 'tlSI 'T A'lnp o o ci ■tiSI '08 o ■q^noui j.id .ijbji $125 00 1-25 00 125 00 125 00 125 00 1-25 00 125 00 125 00 125 00 125 00 J25 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 1-25 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 1-25 00 125 00 1-25 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 125 00 •Jtnca h c o _c_o _c ^ _o _c ^ _o .2^ ^ •5 ^ ^ ^ _0 _o _e -i c o c _c c ^ _o Z c _c o IS i b > < < * "i '" 5 < < B l : < i 'Z. '1 1^ ■i 4: t « if .S « c •? c pi t-: 1- u i t a c w " c fit -c c CO c O •* o B "v cfl P p c P 5 P 'a 1-5 t c B c i: K '•J a c n w B a t w THE SIXTH DISTRICT OF NORTH CAROLINA. 5G3 o o = Cl o o p o o 2 S 5 in W« o o Cl CI o o in CO Cl 1-1 1- o o o O O ?D m = Cl Cl m rs IH Cl 1-1 o o o I 00 = in i o ci :o ! O O O O 3 o o in => => 12 S3.? ft 00 1-1 Cl 1-1 c' o o I- in 00 Cl 00 o o c» o o in Cl o o in 00 to . g : Cl • o CO o 2 O •J -* Cl n n n CO in CO o — in o o m -H 1» 00 o o s Cl o I o ■ o '• lO ■ o <^ 1-5 00 Cl § in o o I in r^ I Cl X • o in Cl — . o o o o o = inin Cl 1-^ in r^ CO 1-1 o> CO o o Cl o o o o oo 1 in 'S' 00 .000 05 ' Cl o« • -*00 1~ ■ 05 Cl §§ 1-1 Cl Cl CO Cl CO Cl o o in oooooooooooooooooc;; oooooooooooooooooo: I CI Cl Cl ClCl Cl c ooooooooooooooooooooooooooooo ■oo~o:roooooooooooooooooooooooo I Cl Cl Cl Cl c Cl Cl ci Cl - ci ci ci c'l c"i : ooooooooooooooooo o o o o o o o 564 COLLECTION OF INTERNAL REVENUE IN 1 / o o i •1881 '08 annp § o; •0881 1 ^i^r fe 125 00 02 50 62 50 1 i i -0881 '08 annp oj •6i8I 'I -^inr o 2 ! i 1.-5 . . in ' '• n • ;« •6181 '08 annp o; '8i8I 'I ^inr o o o 1.-5 . . ^ in •8i8T '08 annp g i ■ 9 = 1 ■ Cl o ■ ■ O lO •iiSI •OS aniif o; -giSI 't i^inp •9i8I '08 annp 0^ 'SiSl 'I Ainp •SiST '08 annp o:j '?'i8I 'I A'lup in M •f:8T '08 'l^junuupmojj •qjnom jod aj«a $125 00 1-25 00 1'25 00 125 00 125 00 125 00 125 00 •JlUBa 4 ss^ & » ' 7) ^ 1- ? h c THE SIXTH DISTRICT OF NORTH CAROLINA. >G5 Statennnt of paynieiifs made to uttvrnaJ-revenne (jatuicrs in the sixtli dislrict, Xortit Carolina, from Au()uiit 1, ISl'Z, to Uneinhfr 31, 1'573. Months. d S d '■3 o 1 CO i^ d 1872 1872 1872 1872 1873 1873 1873 1873 1873 1873 1873 1873 1873 1873 1873 1873 1874 141 50 169 80 168 04 201 94 136 89 99 85 127 25 139 67 117 10 120 04 100 66 122 76 98 80 7 00 $113 23 139 12 166 83 144 12 143 52 142 02 160 53 166 57 153 22 170 08 101 48 32 10 120 00 83 00 $106 03 J 81 77 153 90 142 36 $26 30 153 35 99 00 95 20 $84 95 148 25 127 25 37 70 $122 75 120 12 148 ]3 122 35 141 94 140 38 72 00 147 65 188 17 $94 15 139 42 149 47 163 33 108 40 179 25 11 35 7 33 45 87 75 $142 34 162 32 April ilay :. 86 88 94 64 122 60 '*469'82' 103 75 113 74 Julv 101 51 85 00 32 50 116 63 125 69 130 79 September 112 46 93 50 17 18 51 00 11 60 January Total : 1,651 30 ,1,835 82 ,1,074 67 781 67 I '908 23 1,205 49 32 , 703 50 Months. June 1873 Julv , 1873 Au2ust 1873 September 1873 October 1873 November ; 1873 December : 1873 Total $81 56 90 58 98 69 $;'3 157 Oo . 42 $30 00 76 75 72 50 34 35 ! 301 50 $102 02 $140 66 132 49 144 93 J $22 50 i $18 40 234 51 285 59 22 50 * $469.82 in one payment for all account.s from March 1, 1873, to January 31, 1874. Prior to Augiist, 1872, gaugers were paid by the distillers, and not by the Tnited States. 566 COLLECTION OF INTERNAL REVENUE IN •nos.iapnajj -ii •£ o -^ 1 •MniK Y J $94 85 56 60 11 80 42 10 24 45 aadooo a y li i UO Njjoon YM. •Snoi-ya; t~OTCxcoox o; X o c-1 1-t «• r--H s fi 127 47 108 37 79 30 101 95 98 00 100 00 130 25 88 30 99 85 1 « 106 70 07 00 7.3 90 125 87 38 00 7 10 105 15 32 30 8 50 20 85 X •nujBTC a -J $126 65 119 00 135 11 111 71 115 87 93 06 67 50 51 00 37 50 24 00 66 00 84 00 81 00 99 81 102 34 80 07 t~ tc o c: CO t~ o lO c-i i~ t^ c-i CO CO ro = ^ o OJ c>i C! Lt 1 •SB-'"' '"""' " 111 01 113 10 110 43 81 77 89 30 64 95 100 94 54 75 03 33 89 04 87 25 01 23 92 72 77 05 77 31 11 00 12 00 o 1 t-'^XTf CD CO CO CO »^ t^ •paBno9i 'S T ; ?. o = o 2 38 10 41 70 83 50 91 80 86 10 87 30 90 95 97 05 71 70 •Jlf'H-ill 114 79 S7 50 78 50 15 00 39 00 6(i 00 C CI o O CJ o CO c: »»■ COC-rJ. = iC i-O c- O CO CO c- £ X 3x 50 00 30 50 50 25 ■SSUQ -^ -g; $44 50 139 15 164 31 146 26 121 59 79 50 107 56 98 00 107 83 106 82 105 13 99 75 116 03 39 25 44 95 80 00 16 20 ■8J[»!K: a3jo8£) . m — ■ t~ c ■ee- o o o c- — o in 3 lo l> o o 28 CO 33 80 53 .55 47 30 55 50 101 76 83 00 87 01 .58 35 20 42 ! i 22 90 95 00 72 00 109 63 99 01 46 55 45 50 104 85 1.34 00 70 06 97 40 82 38 69 88 04 00 70 00 70 ori CO x CO Tl CO ir CO P c CO TJ. 1 CO 1 '^ •qeojniOH-Xi?.j S 5 = CO i~ CO uo ir t~ 05 C-l t- Tj. 1.- CS — CO C3 00 L' r- r^ X o iSC>(JO<£ a-. \n 1- C5 .-1 X 70 40 117 38 71 15 62 15 o o Clin •- .* -J OS CO t- : •Il!i-"IS'o s:t 5 t^ •IpMpiBO v T , 1 I a e o o c CO O J- co3u- s 132 84 141 08 98 72 125 39 61 88 90 42 112 75 112 89 94 71 89 21 106 34 81 90 100 27 95 80 70 10 88 21 4 03 4 05 52 84 11 75 •iii;.\!|iiisr)'f ■J. a 5 If - • .-icr: c£ 15 in t; 101 87 87 96 80 72 102 73 77 70 100 62 22 34 39 50 79 75 81 33 ."J 88 72 70 17 81 78 99 50 102 .50 50 00 32 .50 17 (10 IT c: c 19 in in CO ■lAua a T $14 00 139 18 132 73 1!'.S Ifi 105 18 88 00 77 20 89 SO 9S 30 114 74 117 70 129 13 101 .50 119 07 122 59 113 93 9!> 7(i 28 50 114 24 74 00 109 03 110 00 126 50 87 45 26 00 83 50 100 81 69 84 86 31 89 00 Rl III •JB02L -I- -r -1 o5 X 'i X X X -1 -t -f -r -r 1- 1-: 1.0 ic in in m m in in i-s in CO ca CO CO CO CO CO CO CD to CO CO t- Months. u. ? .': -I t. < ■i .4 & J i \ 'j- -? ? .:; r, ■7 '. a { r ' c 1 < < < z 1 b 1 1 ? THE SIXTH DISTRICT OF NORTH CAROLINA. 567 -+ r* X o ■ 'ro oi X • CO O CO cc ' Oi ^ lO o ■ X ooc o It- t^ t^ t* t-- r> r O) X X X X "^ ■ .t^t^t^t^t^r^OCXXXXXXXXXXXCiCsClCJCiCi - - . - - r-- 1— i> t- t- t^ o r- 1 _ _ _ JXXXXXXXXXXXXX xxxxxxx 568 COLLECTION OF INTERNAL REVENUE LN a. «o ■nUJt'K T 1 : ; :^ J ■eniBiiii^ •!> -a : : i ■ . in • . . . . = ir . . .03 • '• I to t- . . .to r ■sniJiaaj -Q a j j : to » -.O CO s ■ . oo^ = ;o ■ . I I I ' I '■ I C3 C-. S-. to '• '• ....... -ee- T-i CO r^ . ■ •noepiABd M a: : i 1 t^ m . •nojdttnJH H X CO X X '• CO S5 m -H m L- CO CO . TCin s: CO \ ro .-1 oj . 00 . in -0 r-( .WO ■* CO I t-X ?5-H . CO » •93aBJU01 -^ -j^ : : : ; \^^^^^ \\\\ I I '■ \ Icocot-cox 1 \ \ I : : ; ; ;ES'"^' : : : : •Eina -v s 30 32 .$20 35 1 63 70 9 97 1 62 82 60 65 52 20 •jioujBdnx 'H ti ! : ; ; ; : ;5 to in coos CO X ^ t^ IC X X S3 CO rt n.-l . . . ino • . ■ (M =3 1 I '. CM . . .IM ^ •A8nni30i\[ : j j . . .X . to ^ . r5 .* m CO . . . •* . t- 33 . . CO X CO C3 . . ! CO . — ..* . . m m m !M ■.* . . .0 . 1. ■* . . Cl I- r-l Oq IM : : ;°^ I '. I IM CO •sraupyji' : : : m 55 19 02 114 74 100 38 100 57 102 78 81 14 92 02 84 17 ■ • in t3 ■ (M • CO X i IM ; r- to . .— 1 "03 1,-' •Bjaq;unig -h agaoa-Q ■ 00 .LOOOtOCO . Tf . s; m CO CO X •t^Ol .T).t-C:^X • '• ■ • '• •uiBqiuf) -J S • ■ »i« 03 ■ c • • (M X W 00 . [- u- • ■ CO CO X 1 -H c- m 01 • ■ t- CM ' ■ CO -M ! ! ■saUAi T I I ; • • i-J S3 . . X !M 1 . t-oo . • c» : if* 1 :^^ •.Caiina: Y 1 ■ ■ t^ • S300 -^ ■ • r-i .ineoeo 03 • '0 ; -* !o X — 1 ■ee- • !oc-mo3 •SaoTOAiT j ! 1 $77 04 88 90 61 16 42 00 42 85 70 90 32 20 65 10 65 49 82 29 9(i 42 107 95 •^anBaiT ; : j : :^gS; : : ;^*?5 : ; : •sBB[gno(i \j a : : : 1 : : : . • t~ -cm • - • • ■* • c I I 1(5 CO tC '• C- J -C = t^ S3 » . . 1 -r = f-i M • ■ t -O 33 CO t- ■ '• f. -H UO » t- . . •3IW!'! Y J $22 40 • n 14 76 75 89 24 64 32 77 37 63 50 54 58 25 13 38 60 35 96 24 32 1 m ■ ■ ' qco I 1 ; CO • ■ . ..}!«* m CO I ' I ' ... in . . . t- : : is •Honof -tj •/' 1 ss? CO X t-- -<• 33 -tOt-OStOSO . 03 • • • • OS 1.0 ! -t — I C-lCl S3 ! 1- • ' '■ I m I- ; «6 m 53 CO .-1 ; ; ; ; ; •nojnooijs "a T $71 00 39 50 52 14 67 85 70 48 6 12 7 24 67 61 53 21 3 62 17 18 '"37 '66 34 00 •JB9i tnintn• t^ rs . in t~ — c^ . cc Tj. in « 00 fe O C5 :g : !M m :g : in . =3 ■ C5 • "* 00 CO . O §§s ■ o o . o o IC o ■ o ■ o =00000 in o in in m in b ■* f'l C!< 570 COLLECTION OF INTERN'AL REV^P:NUE IN •u.woaa H Ai ■ ■ o 9 '"• 9 3i3 9 9 2 Tl X O o t~ to m CO CO i>ci S 65 t-x CO g to X CO to o t- in § •* o" to ■a- ■Saoi M. T '■ '■ ft, •enujaax x T - • CO •nosxaMBd: p -a • c' •.\ioqnag: -g -t: $36 75 122 00 ■titl-iBK: \j -rajt^ o 14 00 34 00 41 50 21 00 •n8ni7[Dia •£ -x . . . O L- . . . in Tt . . . o C^ . . . X to . ■ •■93- o in . o^ . f-J to 1 66 00 60 50 39 00 36 00 •nojipiOQ -a: "T $31 00 31 50 S 50 57 00 30 00 9 50 21 75 52 00 76 50 ^ -ajooK: K "Ai 00 86 St OEt Oi Est OS C£l £9 001$ o ■n m ■ o . o m c- 'in ■ m ^ I- 'in 1 c; X C-l ' < o -^ c $93 65 77 15 20 40 o C-. to CO 1 $179 15 175 DO 100 00 173 00 101 00 171 00 173 00 174 00 57 00 138 75 172 00 176 00 128 50 180 25 153 00 or §■■ -non x H $02 50 200 00 191 75 172 00 170 00 172 00 109 75 175 50 172 00 40 50 66 75 146 00 175 25 146 75 202 25 178 00 2, 047 00 .n o m = 1- in o m o o r: X -X C-. I- L- t- -H ci CO in X 5 S o 5 X " o § 227 70 233 65 X o co" c o • o o ■ rt m ■ • o • 1 o '.'■ o '■'■'■'.'■ '■ ; ; t- ; ; ; 1 ; • :::::: to a> in~ o ci o~ m i 1 -aioqs a: H ■ X S O L- o CI •eSamaap g -g $17 00 52 50 46 00 68 75 in o i-un -^ C5 10 50 74 35 111 80 100 65 72 75 68 00 49 25 61 00 101 :t5 31 50 20 75 9 00 , 53 50 81 00 67 50 27 00 •snooi'd K u $0 50 78 25 98 00 30 00 o in to •iiovliiinn -.w. 'A^ • (MXwo-i-^ooxoin-j.r:sssxooinoo-* • cor-iooc-. inoocoooi-io:xtoot>r-s-i?ii-iot:-M • toXTfror.HX'-i"'rt'totoc'.itoooiMcoinTj'Oi^xcotox • co-^incjxtoootoincitocoini-icorfint-tDtot-xxri 17 56 18 68 76 25 78 50 53 25 47 25 i un a o co" in in •"'•i"i"">!) .1, r* §§SS?;i§:!:g,^2giex'2 ? !n?i53 = 'f=?lr.?SSSSi .g J/f ^ ^ „ „ rt r^ — o a £. o t- 125 82 70 30 82 62 81 11 107 50 122 22 94 46 77 58 101 70 124 18 148 25 127 42 137 40 1 Sgiggs •J119i p S S S S t^ r- T- r- |, I, ,> i_ x X 5B « cc x cc X 9S X X X X X X X cc X X c X X X X X X X X X X X X X X X X X X X X X 00 X X * X X X X X X X X X X X X X X X X 'i « ^ ^ j 5 .j: ■<7 - ; 5 - i : U . J? - :- = i: Ix C ; >^, ^ J: ;Z; ? 3_J , \ • i - - ' — ;^ = 7^1 THE SIXTH DISTRICT OF NORTH CAROLINA. 571 K s 5 5 = = 5 T Tf Tf 4 00 4 00 4 00 4 00 4 00 4 00 4 00 - Si ; ===0=00 000=00= '^ -^ -rt --i* -* -^ Tj' II c |3| : 00 00-* '• = 3 • 00 • ■ s ; x ' xi.-:xxxxxxxxoooo or?»oo = o = = o = iM |2i 000 '. 2 2 2 § ■ OiftOOOOOOOO-* I = ?10 = = = 00CD0 • ||g : OCOC X I 0=0 ■ DO 00 X X X X • • CO m = = X . • .E ^ ■ 5/^ §11 ; Zt ' mil : fcJD -4 2 ; = 2 iH rH r-l iH ■ 00 00 I in GO CO CO ' CO • .5 « -2 2 cS 3 § §§ 000 000 00 ■ CiC? OC 00 00 OCOMIM -* be P ■«6- s > ■66- ^ 1 s . CO ti 1 ^ 1 1 Is 1 1 ^ S i— «1 •sisx 'qojBK sill 1^ 'a 5i 55 V7 c .-fc 52 r ■'. ^ 1- ; i > ; s I -J -^ ■ ? ■ fe'" 5» 5 572 COLLECTION OF INTERNAL REVENUE IN Statement of jicymcnfs made to ■'itoreleepers hi/ J. J. Molt, colhctor >i'u-tJt dintrict, Xorth Carolina, from Junnarij 1, 1874, to Jnne'M, 1874. Kato per day. Amount paid quarter ending March 31, 1874. Amount paid quarter ending June 3'J, 1874. fe2 g Name. 2 a 1-5 "a p $104 104 . 104 48 21 104 104 < 2 3 t-5 11 'S a s a <5« S "0 H $4 00 4 00 $108 .$96 $70 64 104 $104 104 104 $104 16 $.586 Giav, J. W 492 4 00 108 flt! 104 620 Bictwn W H 4 00 ' 108 4 00 : 108 4 00 108 4 00 108 4 00 108 4 00 108 4 00 j 108 4 00 i 108 96 P6 . 96 96 48 96 96 96 72 96 96 96 96 96 12 120 96 24 ! 2.52 Caldwell, F 228 Stpwart A. (H) 70 104 20 104 32 72 104 104 88 104 430 Williams, J. W 588 Temnleton, Thomas. .. Cain B. F 260 104 iH 104 104 104 Bennett, W.G 104 11)4 Tate W. S 104 104 Bailey, W. T 4 00 4 00 4 00 4 00 108 108 108 108 McKee, W. S 8 16 68 104 104 ' 36 104 104 Benbow, E 4 00 1(18 64' 96 104 104 104 Setzer, G. W 4 00 4 00 5 00 4 00 4 00 108 108 nn 108 Smith, S.P Mott.H.T Cloud, Joel Bo"le, W. M 72 68 88 104 104 84 44 104 104 56 104 16 52 104 48 104 48 60 36 48 104 104 8 80 130 104 64 68 104 hi 20 104 52 104 104 40 130 104 104 64 40 84 34 36 100 8 80 56 48 34 88 16 40 48 4 00 4 00 4 00 4 00 Cliflbrd, J. G Patterson, W. W 1 Gill, W. L 4 00 4 00 4 00 4 00 4 00 5 00 ! 24 64 Stowe, L. P 104 8 William.s, 0. G Sherrill S.P Morrow, Leroy Watts T.J 130 104 104 104 20 '104 104 12 92 130 304 104 104 96 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 ■Irnniiijis, T. L Beuliam, B. B Shari), G. \V 104 104 Kuiclics, .). M WiltVinjr.C. A Loni;, T. S Taylor, A. Z 104 Howard, A. B 96 104 Ilol.liH, Milfiin ■ 1.11 kins, E. .V ioi 92 Tlioiiiliur" J. T 4 00 4 OO 4 00 36 104 56 Thompson, J. S Little, P. A 104 56 16 firegorv. James McCoriile, W. A 4 00 4 00 48 . i THE SIXTH DISTRICT OF NORTH CAROLINA. 573 >St((t(mciil of pai/iiiviifn made to ■•ili>irkrcj)C):s hji J. ./. Moff, collector ttixth difitrict, yorth CaroVma, from July 1, IHIA, to June 'M, 1875. a a Amount paid quarter endiuK iSeptember 30, 1874. Amount paid 1 quartfiend- ino Decem- ber 31, 1874. 1 Amount paid quarter ending March 31, 1875. Amount paid quarter ending; June 30, 1875. Name. 00 a •5 ft 1 u s 1 a a a a a hi 1 < 3 »-5 Setzer, G. W $4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00- 4 00 4 00 4 00 4 00 5 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 5 00 5 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 ' 4 00 4 00 $108 24 12 108 32 108 108 32 36 40 108 108 108 108 108 108 108 108 135 108 "'se' $36 $104 $96 $100 $104 96 104 104 $96 76 96 72 $88 "m 60 $88 16 104 104 $104 B<)"le W M 104 48 $100 Doiifrlas, J. P "io4 104 88 108 100 104 Clitt'oid J G Ji-uiiiuji8, T. L Stow.' L P io4 104 "io8 28 100 104 104 96 96 96 72 96 96 92 76 108 "irs' 108 22 100 104 104 104 104 84 104 84 104 60 104 104 60 104 104 80 96 84 108 100 100 100 104 Cain K F 104 104 104 104 104 104 Tenii)leton, 'Ihouias . . Lons,T-S-(M i.) Ben ham B B 104 104 60 104 104 104 104 108 108 100 100 100 104 64 92 104 96 104 104 104 12 104 104 130 104 44 '"'46' "io4 130 104 84 104 130 56 Bennett, W. G Moirow, Lero y t AVatts T J 108 105 108 100 125 100 104 130 96 120 106 135 72 104 130 104 130 McTiill M. S McCoikle W. A 104 20 92 56 96 '"'ge' 108 100 40 56 64 104 104 "io4 104 100 44 Tate, \V. S 108 60 108 48 12 30 100 100 100 104 100 Haynes, Thomas Martin J. H . 104 Gill W. L 28 104 96 104 Thompson, J. S. t --- White M A1 125 ... 48 ... 64 1 .. 48 '.- 130 104 104 1C4 104 104 32 72 120 96 96 96 96 96 96 135 108 108 96 92 84 40 130 36 76 130 ' 'i64' 130 Tays S. L 104 Gray. J. W Shaip, G. W Caldwell. J. E. A Williiims J W 96 96 96 104 100 32 104 92 104 Cobb E R Lon" J W C 32 96 36 32 16 "ios' 108 108 108 60 12 80 8 12 12 44 4 104 104 104 104 104 104 12 92 104 100 104 104 1 24 Tucker, D. S io4 George W H 1 Patterson W W ' 104 Little P A Daniel G S 1C4 16 Moore W A H 1 (Jaldwell. L. C. (J. C. ?) TiK^ker F P 8 28 20 20 8 4 Bailey L A Moss W" B 24 Wilfong, C. A Ballew, Aabery Walker W M 12 4 88 Shenill S. P 4 Withers C C 104 Pattei'son J H 1 . 8 1 1 \"' '' 'i ' No payments made by Mott. J. G. Earasay, collector sixth district, North Caroliua. t General storekeeper. + Acting general storekeeper. 574 COLLECTION OF INTERNAL REVENUE IN Statcmeiil t>J' paymetitii made to storeleejX'rs bt/J. J. Molt,coJlcctor n'ulh district, Xorth Car- olina, from Julij 1, 1875, to June 30, 1876. Name. 5 00 I 00 Moss, A. A Patterson, "W. "W .... Bo^le, W.M Gray, J. W Williams, L. J Lourance, "W. E AVatts,T.J Tays, S. L Adams, J. F Haynes, Thomas Keece, W. A Tucker, D.S Clittord, J. G Loiitr, T. S Westmoreland. W. L Tiilliville. L. W Stowe,L.P Ballard. L. A White, M. A." Morrow, Leroy" Williams, J. W AValker, W. M Jeniiinfis, T. L Temi)letou, Thomas . Gill, W. L Hobbs.C.A Cain.R.F Douglas, J. P Downs, W.W Georije, W. H Orrell,D.E Stewart, A. H Furches.J. M Caldwell.J. E. A .... Thompson, J. S.^ Cash, J.P Tate.W.S Wajroner, E. L Withers, C.C Cook,C.L McGinniss, Nathan. . Moore, Williams, M.C Louji.J. W.C Jones, CO .Morrow, L Shaii>e,(t. W M.irill, W. S Drake, E.H.; Smith, S. P -..1 Pearson, J. A WilfoncC. A Suioot, G. S Dula.S. A Coon, W.P I'aHHoiir, D. R Cliiie.J.J Brown. W. II .Moff, H. Y IVuiiijxarner, T. 1,, •lew.tt, .M. W Hr.V"". A.C Blavloek..!. K Alwell, 11. I Kiirrh.^, W. !•' I'rivelt,,r. J* North, T Cline. K. P. 'i ' 5 0() Prnther, N. F 4 00 • General Htrirekceper. I Acting K''"''''"l Htorekr M Quarter end- Quarter ending ing Septem- December 31, ber 30, 1875. i 1875. $72 108 40 4 40 60 108 20 12 88 76 104 4 108 88 135 135 32 12 108 108 96 12 76 104 4 88 16 92 108 108 $104 40 104 96 104 104 130 115 $24 $88 52 130 115 104 104 104 80 24 88 104 96 104 130 130 44 5 00 4 00 5 00 104 104 100 15 104 104 28 88 104 92 44 104 104 104 104 104 104 8 20 8 15 $104 44 4 12 104 72 14 104 80 130 104 104 $108 Quarter ending March 13, 1876. $104 100 8 104 $100 36 108 108 108 108 44 108 108 135 108 108 108 108 108 108 108 98 96 104 96 24 32 104 96 32 16 130 68 100 12 76 56 108 108 108 108 108 100 96 72 104 104 100 100 100 100 92 104 104 130 32 104 100 100 125 88 100 100 104 80 104 100 72 108 108 135 108 108 "i08 108 104 104 4 130 90 68 44 4 8 92 100 8 104 92 100 100 100 100 100 125 100 100 100 100 100 100 8 CO 36 $12 92 104 100 108 100 8 32 104 100 135 108 108 108 108 108 108 108 104 100 108 108 135 92 Quarter ending June 30, 1876. 100 100 $12 104 108 84 108 108 100 i 108 100 I 104 125 , 135 104 108 108 104 100 76 32 100 ' 108 100 I 96 100 I 100 100 125 100 108 104 93 135 104 16 100 88 108 104 100 100 84 100 108 108 84 100 100 : 100 84 108 108 108 [General Htorel> a 1^ $4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 $104 $104 104 $64 AVilliaiiis J W 104 104 16 56 104 Barkle V W. A $76 Jon°8 c' C $16 Moss A A "so' 104 72 $104 ■■■4' 4 Long S 68 48 100 108 $96 $4 Watts T. J 104 104' 16 24 68 96 72 $100 40 Rich T W 104 16 .'56 64 28 12 76 32 72 104 84 68 100 108 $104 Ehyue, J.L 104 104 20 108 - ioo • 92 108 96 108 104 Tucker D. S i 16 28 Gill W L 104 Caldwell F. A Caldwell F ioi' 108 96 Ca'dwell L. C 24 28 108 24 12 108 64 36 56 108 108 108 108 Clarke J A McAlpine, T. D AVhittaker AY S 96 108 100 108 104 "Whittaker J.L Hildebraiul A. G 96 Cobb R A 96 96 96 96 96 96 108 64 108 36 100 "'64 108 104 Tavs, S. L Howell, X.B. (G.) Luther, H. A Hildebrand, Otto 20 96 4 72 108 80 28 28 96 108 108 44 52 100 SuUivau, J. C Lonp, J. W. C "'ioo' 8 104 108 Smith, A.T 60 McKie, G. W Sherrill, S. P 60 100 100 100 100 48 108 ""20 108 64 Moore, H.W 104 68 AVih'B A 1 68 Tritt J. D 16 Howell, R.L 36 28 108 108 108 .28 60 72 Bonle K.H 4 00 4 00 4 00 4 00 Eve C. \V 104 104 1 THE 8IXTH DISTRICT OF NORTH CAROLINA. 77 tStdtcmcitt of iHUjmenU made io siorclceeperH and sionkeepers and yaugers bi/ J. J. collector sixth district North Carolina, from July 1, 1877, to June 30, 1878. Mott, t4 a p. Quarter end- ing Septem- ber 30, 1877. Quarter ending December 31, 1877. Quaiter ending March 31,1878. Quarter ending June 30, 1878. Name. 3 < 1 1 m 1 .a a > 1 P 1' 3 1 1 } es $i 00 4 00 4 00 4 00 4 00 4 00 4 0(1 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 $08 $28 104 $108 108 52 $96 96 52 $104 104 52 $00 104 104 $104 108 108 $56 Drake, E. B Tate, W. S Cobb R. A 104 104 104 104 92 12 36 104 104 104 96 104 48 104 16 104 104 60 48 $108 108 16 10« lOS 36 108 108 108 108 108 108 108 $100 100 $108 108 $104 104 100 100 Mott, H. Y Cook, C.L Bell S. S 92 96 4 12 16 100 100 52 100 100 100 108 64 44 104 104 104 108 108 96 96 88 60 164 80 24 104 104 24 108 108 "io8 108 100 80 20 Tavs S. L 84 108 108 "'96' 96 12 96 104 100 Lon<;, J. W. C Howell J. B 108 108 108 108' 108 88 104 104 104 48 104 104 104 104 104 68 Wliite, M. A Moore. H. W Eve, C. W 104 104 104 72 108 108 108 68 96 96 96 96 104 104 104 104 104 104 96 104 108 100 TempletOD, Thomas.-. Sharpe, G. W 108 100 Cannon G. W . . . 108 108 8 100 100 100 108 108 108 104 104 84 104 104 104 100 108 84 108 56 108 52 100 MeKee.G. W Hlldebrand, J 96 96 100 96 104 104 100 Barklev; W. A 24 92 84 •"" Stowe.'L. P Boiile, K. B 92 100 8 8 24 48 108 104 104 88 96 104 ■"i04" 80 KliVDe,C.M Rh'vue, William 1 1 Ferguson, F. C... Ballew, J.R 108 52 56 28 36 104 104 84 96 104 104 108 100 56 104 104 92 20 20 20 Davis, J. R 104 108 96 104 96 104 104 108 108 100 Cain, R. F Smith, A. T 104 92 96 Hihlebranil, A. G Mciilpine, T. D Fisher, F.M 104 108 96 104 104 108 100 Davis E. H ioi 76 104 104 64 24 68 32 56 20 104 108 40 Bailev, L. A Atwell, R. L 80 108 108 108 108 40 20 36 24 24 16 72 16 96 96 96 96 104 104 104 104 104 104 104 104 108 108 108 76 100 Douglas, J. P 76 Mock, L. C 100 Stinson,J. B 100 Withers, C.C 16 32 16 96 ' ioo' Westmoreland, W. L.. 76 Holland, W. F 1 ........ 1 i Furches, J. M 96 96 96 64 104 48 76 104 12 104 4 104 108 100 Sherrill, S. P Bogle. W. G 88 104 104 104 104 108 108 108 ioo Grav, J. W 100 Jennings, T. L 100 100 Wells, J. W Williams, J. W 48 24 44 8 76 68 8 72 108 108 4 108 108 100 Patterson, W. AV 100 Sluimatt, L. W 20 Mavhew, W. A 100 Bristol, L. A 100 Martin, J. M "ios' 104 56 108 108 24 Lourance, W. E 40 Diila, S. A 100 100 Smith, D. V 100 Cline, J.R 12 100 Watts, J. A. F 64 Powell, P. S 100 1 48 l'"'" ! 1 1 S. Mis. 116 37 578 COLLECTION OF INTEENAL EEVENUE IN Sfati))iciit of payments made 1o storekeeper>f and storekeepers and f/aii/jers hy J. J. Mott, col- lector sixth district, North Carolina, from July 1, ld78, to June 30, lb79. Xame. Drake, E.B* $4 00 Morrow, Lerov* ' 4 00 Smith. A. T .' 4 00 Sharpp, G. W ; 4 00 Stinson, J. B I 4 00 Smith, D.V | 4 00 Lourance, W. E j 4 00 ilc Alpine, T. D 4 00 Quarter end- Quarter ending ing Septem- December 31, ber 30, 1878. 1878. 00 4 00 4 00 4 00 4 00 4 00 4 00 Westmoreland, W. L "Watts, J. A. F . . Williams, J. W . Wilkinson, M. A Hi'iulrix, J. K ... Huttinan, S Mayhew, W. A . . Moore, H. W 4 00 Mock, L. C 4 00 Mott,H. Y 4 00 Tate, W. S 4 00 Tay.s, S. L 4 00 Templeton. Thomas . . . j 4 00 Lonj.', J. W. C 4 00 Davis, E.H 4 00 Khyne, J. L i 4 00 Ferguson, F. C Farches. J. M . Gray, J. W . . . . Cobb, K. A . . . . 4 00 4 00 4 00 4 00 Cook, C. L ! 4 00 Cloud, Joel Cline.J. K Cooper, A. D * Cannon, G. W McKoe, G. W Bristoc. L. A Angle, S Bell, A. W Dula, S. A Davis, J. R Dickev, J. M I'atter.son, W. W.. Powell, P. S .rinniugs, T. L Jiogle, W. (i Patterson, W.J ... Ilow.ll.S.L Burke, It. F Soiiiers, J. D Withers, C.C St. .we, L. P How. II. J. B Sb.itill.S. P M.l)..w.]|, A. B ... J{;iiii»av, I). A DollghlHM.J. P I-..ng,('. I) Wiir.Mig. C. A ... . Mill-till, J. M KhoadH, .M.L Koiiiiiiers, J. C MOHH, A. A . . . , ,. Gl.iiri, T .. M< I)..w.ll,.s, M .. M.Kow.ll. \V. P... Ciiiii, k. F Itaiikiii, W. I! D.MighiN-.J.t; Bell, .S. S Kl.ilz. » "' Moore, W.M 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 $108 I 108 92 * 108 I 108 I 40 I 108 I 108 108 I 40 108 108 108 96 I 108 108 108 108 108 108 52 108 ! 108 108 108 108 108 104 108 40 108 68 8 108 92 84 48 108 108 80 64 108 108 44 12 00 00 00 00 00 (10 4 00 4 00 4 UU 4 00 4 (lU 4 (III 00 (10 (10 11(1 $108 108 108 108 108 108 84 108 104 108 92 108 48 108 80 108 92 48 108 108 108 '84' ios' 108 108 i(38' 108 108 ' 60 24 24 16 72 Quarter endin" March 31, 1879. $100 100 100 100 100 100 96 56 100 100 100 100 100 100 100 100 100 84 100 ioo 100 100 76 100 100 100 108 108 108 108 92 108 96 108 108 108 108 108 80 108 108 108 108 60 108 32 108 108 108 108 108 36 108 '48' 108 108 96 108 .52 108 108 108 108 16 108 108 40 72 12 108 108 'ios' 108 16 32 28 12 4 108 :i6 24 88 88 «0 80 40 :i« $104 104 104 104 104 104 104 80 104 $104 $108 104 i 108 104 108 104 L 108 104 \ 108 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 104 '164' 104 104 104 76 36 104 104 104 32 104 104 104 'i04 104 'io4 104 104 \m 104 104 104 104 104 104 104 104 88 104 104 104 104 80 104 104 104 104 92 104 104 92 104 104 84 104 108 108 108 88 108 108 108 56 52 108 108 108 108 40 108 108 108 108 108 108 108 92 92 104 104 104 104 80 104 104 104 104 104 100 104 104 '104' 96 104 80 16 104 "\M 88 104 108 108 80 108 108 108 'io8 108 108 100 108 108 108 108 "ss' 96 108 108 28 108 108 ios' 108 108 104 104 104 104 Quarter ending June 30, 1879. 104 104 .96 104 104 104 104 96 104 104 104 $104 104 104 100 104 104 104 80 96 104 104 104 40 104 104 104 $108 108 108 108 108 76 108 92 32 108 108 108 16 104 104 104 48 104 104 104 104 'ioi" 104 68 104 104 "ioi 104 104 'i04' 104 104 100 104 "va'i 104 104 8 104 104 lilt li'J 104 104 104 104 104 104 104 104 108 108 84 100 100 100 108 100 108 108 108 96 56 100 100 104 104 104 104 104 104 104 104 60 104 104 104 ioi" 104 104 104 72 104 "164 "is' "■m 'ioi' 104 104 104 KM 1(14 UM 108 84 108 108 108 108 76 108 108 108 108 108 108 'los" "96 "i(')8" 108 108 'ios' 108 108 108 108 108 (Iiii fial slorekeiiier. THE SIXTH DISTRICT OF NORTH CAROLINA. 579 Statement of jxijjmcnts made to storekeepers and storekeepers and gau(jers, ijc. — Coutiuued. Quarter encl- iug Septem- ber 30, 1878. Quarter ending December 31, 1878. Quarter ending March 31, 1879. Quarter ending June 30, 1879. Atkins, T. A Adams, J. F Shore.F. T Adams, F. M Sleuman, C. II Riitb-djre, Z T . . . . Suggs, J. T Hendiix, Z Somers, P. F Parks, McR Huss, J. F Howard, "William Allgood.D.P Grentry, A. D Jarvis, Josepli Long, A. P Snuyne, E. L . . . . Aberuathy, E Khyme, P'.J Groner, A Jenkins, P. "\V . . . . Morrison, "W. C . . . Price, W. L Hanna, J. M Mason, L. A Kimbrough, M . . . Langenonr, P. F . Keener, J. A Little. P. A Bumgarner, T. L . Tuclier, F. P Tucker, D. S Hartman. Enoch . Stewart, J. H Pearce, W. L Lourance, C. W. . . May berry, A Badger, 6. W Hoots, W. F Dobsou, Kufus . . . Bailey. J. K Salmon, A. M Khyne, W. H Bruner, T. K Setzer, G. W Hooper, M. L Hildebrand, P. M . Hanna, L. G Reed, S. M Morriss, S. M Barringer, Noah. . England, N. B . . . . Poindexter, G. Z.. Lay, W. B Lowe, R. R Rntledge, JohuT. Ellis, W. R Barklev, W. A.... Sullivan, J. C Deal, Sylvanus . . . Lowery, D. L . . . Kenned J-, K. J Barklev, G. A .... Ilollanll, W. F.... Wallace, E Call, J. S Abernathy, J. R .. Price, Thomas A . Cawley, S Clarke, J. W ■Wells, J. H Bell.R. L $4 00 •1 00 ; 4 00 4 00 4 00 4 00 , 4 00 4 00 4 00 4 00 4 00 ; 4 00 4 00 i 4 00 I 4 00 1 4 00 4 00 4 00 4 00 ; 4 00 4 00 i 4 00 I 4 00 4 00 t 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 00 00 00 00 00 00 00 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 $16 96 104 104 12 20 104 48 24 104 104 104 104 16 72 68 44 104 12 16 104 16 8 52 84 92 8 96 96 28 32 96 44 4 4i 104 $10e 108 108 108 20 108 108 108 108 108 108 100 108 108 108 108 108 108 108 108 80 108 68 12 84 68 92 108 60 56 8 20 108 108 108 60 24 44 80 9:2 92 72 .$104 76 88 76 48 104 104 |I04 20 104 $-.03 108 64 104 104 108 108 56 104 104 104 104 104 92 16 108 108 108 108 104 76 108 108 104 104 104 104 104 104 104 104 104 104 104 92 104 104 104 104 104 104 104 108 108 108 108 108 108 108 108 108 104 104 104 104 104 104 104 104 104 104 80 104 56 104 104 76 104 104 104 104 104 104 104 68 104 104 104 104 104 104 104 104 ln4 1U4 104 104 104 108 108 104 100 108 108 104 52 104 108 104 108 56 44 104 108 96 92 104 108 104 108 104 100 104 108 104 108 104 108 104 44 104 104 lOS 108 104 104 104 56 104 68 li8 108 57 108 104 108 104 44 104 108 104 84 1114 108 1j4 108 580 COLLECTION OF INTERNAL REVENUE IN Stdtemtut of 2>(t!j)ue)tts made to storekeeper.^ and niorelicepers and tjaugers, cj'c. — Coutiiined. Quarter end- ing Septem- ber 30, 1878. Quarter ending December 31, 1878. Quarter ending March 31, 1879. Quarter ending June 30, 1879. Xame. '5 Pi >5 ^ i CO i s O 1 i 'A (1 SI .a s o ,,viM,s.(; /\.lii.iis. K. M 16 88 104 IliilbiMil, W. !•■ 100 IijuiM K. II 104 !<■ nni-ilv. K. .1 ' \ i^ljil, Si. II 4 104 1 MI.IHM..I. M M.ii.lll.S, I' A\.l|..tlr..I. V I'.i-ll. W 104 104 104 -Cfniial sl(.rcUir|M I. THE SIXTH DISTRICT OF NORTH CAROLINA, 583 iStatemcnt of paymods made to utorekecpers and titore'kei'pcrs and (jangtrs, cfc" — Continued. >5 a 13 1 Quarter end- ing Septem- ber 30, 1879. Quarter ending December 31, 1879. Quarter ending March 31, 1880. Quarter ending June 30, 1880. Name. 1-2 1 u 1 o 1 i > 1 1 1-5 >> 2 B 9 1^ i $4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 $32 $80 84 isioo $108 108 104 108 108 108 108 108 $80 32 16 104 96 104 104 104 12 $92 104 52 104 100 104 104 104 $104 Bo'dc \X G $108 108 108 "ios' 108 108 $96 9() 90 60 96 56 96 $80 "ios' 108 72 108 108 104 Browu J W 40 92 Ciuiuel, M. M Frouelnuger, D 16 44 32 60 108 16 104 12 88 8 16 16 28 100 "ioo' 100 100 104 20 104 Mumly.J. F Pusour S P - 104 96 .... 100 108 44 .... 40 36 8 Tays, S. L "Watts J A F IGO 20 92 96 44 100 68 44 108 68 Williams U H "Wool Ir lift; J. M Youn<' E. M "ioo' 88 100 24 8 16 96 92 12 60 "ibs 88 108 108 20 'l08 108 108 108 16 -- 96 76 96 96 "ios 108 108 108 32 "88 104 104 104 24 104 104 104 104 24 104 Bristlii L. A 88 Call .T. S 104 104 4 00 Goun-h W. S 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 76 108 88 108 ins 108 92 88 108 108 92 28 108 108 96 80 96 96 96 96 108 76 108 108 108 108 104 80 104 "104' 104 84 80 28 52 104 Gray, J. W 68 Mason W D 104 Moss H A 100 108 48 108 64 60 108 104 104 Tucker F.P 96 96 108 108 104 104 104 104 104 64 104 16 60 100 104 Adams ft W . 108 108 96 96 108 104 8 100 12 84 100 108 56 24 12 84 ' Foard R. H 108 36 108 108 96 96 96 96 108 108 108 108 108 108 64 100 108 108 56 108 108 104 104 104 40 ibi' 104 92 104 "ibi' 104 Havnes T. B 104 Hediick.J. T 4 00 1 68 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 TO 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 i Howfll J B Howell H L 108 108 108 108 108 108 108 108 96 92 40 96 96 96 96 96 104 Jones, C. L Kerley.T. A Little' P A 52 104 104 104 76 104 104 104 104 104 104 24 60 36 108 108 16 88 8 48 . 72 McIntyie.J. T Parks W P 12 24 104 104 104 Poiudextor, G. Z 104 Wilfong.C.A 108 108 104 88 40 8 16 108 8 88 76 108 96 96 96 96 96 108 108 108 108 108 104 104 104 104 72 104 76 104 20 72 Stewart, J. H Ballew J. K 100 Combs, Hlx Hendrix, R.J Hoots W F 8 96 108 68 Johnston, J. A Rector, E 1 1 96 96 % 16 96 68 96 4 96 > 52 ! 12 308 108 108 8 104 104 12 104 104 104 Smith S P 104 Bickuell B E Holdeu.J. H 1 . 12 108 108 108 108 104 104 104 100 104 104 104 Nick P M 72 1C4 Phillipps, G. W Saiilsbiiry, D. C Shore H E ' 108 108 104 104 104 ]6 "ibi" 104 24 92 56 24 104 104 Davis.L.E I ' 1 584 COLLECTIOX OF INTERNAL REVENUE IN Statement of payments made to stoyekeepers and stovelcceperii and gauffers, <^-c. — CoDtinuetl. Xame. Hampton, T. H $4 00 Hawkius.K 4 00 Hemhis. J. K 4 00 Huss. J. F 4 00 Lofiin. E. L ' 4 00 Martin, S. J 4 00 Meiouev, T. A 4 00 Sorners.".!. F 4 00 Smitherman, J. T 4 00 Walker, VT.U. 4 00 Walton, E.S 4 00 White,M. A 4 00 Winters, J. C 4 00 Anderson, James 4 00. Brown,H.L 4 00 Davis, S.L '.. 4 00 Etlw ards, Vincent 4 00 Gentrv.W. A 4 00 Heuuesee, R. J 4 00 Kearns. John T 4 00 Linebarger. D. E : 4 00 Marklautl, G. W 4 00 MoiTis,B.O 4 00 Moss, W. B 4 00 Porter, W.F | 4 00 Protiitt. S. T..... | 4 00 Pruitt, J. M 1.... 4 00 Shores, W. C I 4 00 Sheltou, J. B ' 4 00 WUliams, S j 4 00 Ward, S. P 4 00 Alexander, W. F ! 4 00 Calloway,.! : 4 00 Douglass, Thomas A ..i 4 Ou Garwood, M 4 00 (iodreeu, James '< 4 00 4 00 4 00 4 00 4 00 4 00 4 00 4 00 Quarter end- ing Septem- ber 30, 1879. Quarter ending December 31, 1879. Haithcox, D. M Martin, W.D. Mills,Ar.J... Peddvcord, S . Pl\ k'r, H Roseman, M. T Setzer, J. C ... Shore.C I 4 00 Stipe, L.W 4 00 Tnvlor, Peter 4 00 Todd, R.Lee 4 00 Bowman, W. G 4 00 Culbretli, E. W ; 4 00 Douglass, W. C 4 00 Houston, E.L 4 (M) Jones, Jidin 4 0 t- t* L* X 00 00 00 ooooooooooo OOOOO-'tXX'^XCOOOO C:<3i-i000i»00000 •qaaBK «■' S S ' •XiEU.iqa J ■A.iitnnup 5- -J U3 :- -^ o :o -*-*■* •^- X X ^ o o o o nx o § i -jaqniaoaci MaqmaAOX 00 X X "* -^ X X c Tj- o ox o o 0(M0C500C>00 oooooooool::o, o Maqovao S-" iaqttia;(Tas [ ^^ --i.-it-.'-i r-irtr^^rt •:^snStlY o o o o o o X X X X X X o o o o o o •Ainp I ^' !0 5^ X l> QC •«♦' X. O "^ O O 'ft' O t'- ■^ ■'^ tJi -^ ■-* -^ ^* o o o o o o o COCCCC'OOOOOOCCC oooooooo :o :o cs O cc X oc :c X X ojoc o "'I' -3 X -f -+ ^ -t - o r; -^ o o t-- o : OOClO'OXOO X X -rj" 5D tOrfX XXr>lX(M-<*'-^XXX t-OOOOf-i t- C- L- t- t~ •* •^udv rt O = = =• = = =; O = => • -^'■*'*-(<-*-*r)'*- CO CI -rt- -^J" O '^ oc I:^ O c «? o •qOJBj^ 0C00-*X00O0C0000O0D 00 00<300000 oooooouoccooooccccooocoo OO00OOO:=OOOOO O CO 00 00 CO 00 o o o ooc o •^aBn.Tqa^ «o«dcocooooim:C':o:oc! 0300S030^QOt^0^03CdO) cocd:o!0^:dcococdcicd:o®cqqo«o 00)O^Ci05a^OZC^S5CCAOd0203COO o o o t-O'*OCD00O ■ «0 -It -^ Tf iH O O "* OOOiCCDOOOOOOUlO K \ = I 0.^ •J9qra908(i Ss."" 00000000C1000000O00000000'<*<0D0C00C000O00C00CC000Q0 0300mo03»000 = OOOOOOOOOOOOOC10 •jaqni9A0j^ OO '«300i0000 ^^ oooooooooo: •J^qo:^^0 '^^T*'TfCJ*1'Cl'^'*T*-rt^''t';fTf-+-^-*-^ OOOOOJOi-iOOOOOOOOOOOO O O O O 00 o O O O t^ 05 O 03 O btoo coo OCl -* 00 lO ^ 00 "* •:jsnSnY ■Allip Z OTt"OXOOr-tCiOOOOOOOOL--0 O O O O CD O •^ '<*"+ CI -^ r^ o o o CS O l> 000000030000 OD Tf Tjl QO GO ■<*< oc O O X> GO O COOOGOCOCOOIMXXCOOOXOO -CO GO GO CD OOOOOSOOIOOOOOO 'OOOC5 CO X Tt< '^ T^l 00 O O oc CD 05 O 000 — 0000 — 00=500000000^000^000000000000 S il'' :j :f^ .2 C8 O bi O O b > K •/ ■/ i-J w t:>0 CI ift - lO L" CD L- « C^ ?D CO t- Tf tr* t> 00 00 00 iH 00 t« l> t^ o c- ^■^OO-*-^-"*-*-*-^ OOCJOOOOOO O O O O CI c o o o o o •^ 00 OO 00 CD oc o -* o Oi CIQOCDOOOOOCOOOOOOOOCOC10030 OSOOOOOOOOOOCONO 00 00 CC 00 CD O =5 O O OS OC 00 00 00 00 OOOO OC OOOGOO o o o o o CD CD CD CD :DC-)tOCDCDCDCDCD00CDCD o^t~adcoo^030)Os^050s CD CD CO CD CD ■ CD -^ O O Oi Ci 7S • OS 00 00 CD CO O CD CI OS Oi 00 OS CO coco '^ CO O: OS OS 00 t— OCOOCDCJ'<*MO-^*J<00 COCOOO— iI'OOStJ'OO'* OOODOCOCJOtJi CI O O 00 O w O 1-1 00 OO d OO 00 CO 00 O O OS O c: OS o oooooooooocooo oooooooso 00 00 00 CO o O O O OS X ooooooocooooooouoo Tt< 00 00 X C3 C O O O 1-1 -rhCOO-^-^-^CDOO C-1 O". O X O O t> X CDTt'TfTj'TtiXO-^Tt-^'* OSOXOOCI-0 => : •!*'T*«CDOTi<'rt''^Tf OOCr-CO— XOO Tf Tt« Tt Tf X X CD O O O O X CO lO '^ Tf 'rf O O ^S" Tf o o c; o o o o ,-, O OOOO cooocoxxxxxxxo CCXOIOOOOOOO-^ ^ X "^ ''t' O ^ •'i' O X O O C3 o o o o xo OXXXOO'^C^O OOOOClClXr-iCS X X X X T*' T)« -**• T*« -M CD X O O O O OS ITS CJ CI X -'J' X X X X X' X X CC O CI O O O' O O' o o o-ooooooooooooooooooooooooooooooooooooooooooooooooo £- oooooooooooooooooooooooooooooooooooooooooooooooooo ^ a :iKS = =;:5:lsSWMaaWKMKKaaHrtSHKHS'^-5^'^^>^«'ri^tilW 588 COLLECTIOX OF IXTERXAL REVENUE IN S OS ■aanp i~ . -j: t- '.o •aunp 0.-H ■iupi ludY o o o t^ • X M ■* CC X • t^ t- O l> t'- X -f X X X X X X X X X C-IX C: O X X X X •qoai;i\[ •i'jBnjqajf o :c ;o ^ o o: 35 C5 CS C3 CJ :d !C> to X CO o m C5 C5 C5 C^l C5 c: iJ3£22^^222® Aauunup ■■I3qni033(j .P = •.laquiSAOx ooxriasx-vx •*-*■* O O -i- -* o — o :o r» — o -.laqoioo ^'■ o o o o X-T+'OXXXXXXOXXXXXXXXXX o o to = osoooic = = 000 = 0000 3*^o^^xo^x-^-3^ CCo fe(X ■sa c M.iqmajdog 00x0 •!)9n3tlY ^'■ ^ '^ Tf X O -TJ' O O O Tl -* O ■<)< ■* C-1 X 'J' -* -* o o c: ^ o o o X X » 00 O X X X X X X X X X X 00 •* o o o o ^ o ir^ o o o o X o o o o O O ■* O X ■ CO CO 00 O 00 00 • O O O !C O O '.u![) lad o;iiji OOOOOO^O^OOOOOOOOOOOOOOSOOOOOOOCIOOOOO iOOC:OOO^OOOOOOOC;3000 — 0000; ^f^ : y?. h;^u..'^ !>f5e".ipJ'A' TFIE SIXTH DISTRICT OF NORTH CAROLINA. 589 r- r^ i, . . t- t- t^ ■ r- t- -r-[•-t'l- ■ 1^ r^ t' t-t' • • t* • r-- t^ (M • Cl C^ ■ Cl 71 ?I TI CJ ri -iO -- i-t <-* O 1— ' ^^ ^ ^ S^l :»?:■* ic ic L^ o »n lO CO M 'OC X 00 t- t^ • l> l> t- W J7* t> lO W-^OO-rt-OOOOOXiOOCCQOOOOO rt CJ t- OJ :0 t- r-i t- L- t> 00 t* t'- «ooooo»n»oooo(N-^oo CO i" i> ^ o C-- c* -v ;^i t^ ■r#<-r00O-<^'rf7vl-rt«-^rf-* — ^ o o o o Oi o o o ooooooxooooo xxxxxxxxxxxxx<:oxo OOOOOOOOOOOOOi-«OC3 X X O-r** X X o o e: o o o XXXXXX-*X-*tXXX O :0 <0 « tC O CO c-i o; c: 05 Ci CI oj CDCOCOOO-* cd-^c;;c:d oo:oaa:a^x •o)?qa:a3c: ',r ^ -* -M X Tt oirt'OOic -xoxooo X rf X X xxxxx oxoo o^ooo O X O -^ X X CO O O 71 o o XTt<(MOXCOXXCOXXO OXUtXOrHOOt^OOO 0^:^000 > O O CO . o T^TfXOCO"^Tt'■^■T}^ — — CCXOlOOOO o o o o o o o o o o o o o o ir:i o o o Tji Tt- '^ Tl< CO t~ CO E~ " O O O O O C3 O O ■ O 00 •^ -^ -^ CD 00 ■qo.iPM 00 O OC 00 OC 00 o to oo o o X 00 00 O 00 o o o o o •Ajunjqa^ O ?D CO CD !0 CD X C2 C3 O CS 03 •A.n:nni;p CO "M CO CO 03 0> OS o CO CD X O ■* ^ Oi ^ -^ r^ ^ :tj O OCq ^-rt" C T-1 O CO •aaqniaoaa; ■*xxxxxxx xooooooo •jaqraoAO^ ■jaqojoo --,♦■-<# CD ^ ^ •* o o ro o o o ■^Tj'XTj'-^X!MCONir3Tj*'^'^OXCO OXX(Mt^OCC'^'M"*MTt*t* C3 i^ ♦= a •jaqtaa^dag ■^snSuY O" •^inp 1 o o o o o o o 1 o o o o o = = oooooooooooooooooooooooooooooooo ooooocooooooooooooooooooooooooooooo ^-^'^z; _^;= V I V ^ 2 i i z%.S^. •-^•/; fs^d ^°w^"!]' -.1 11 -p 111 -1= 1 1- 1 'P 1 1 5. ills THE SIXTH DISTRICT OF NORTH CAROLINA. 591 ifl. CO (N 00 Ol (M ^ CQ rH l"^ CO ^ »•: ■ t- t^ r^ . t-- < o I-' t' • r- i^ r^ ■ t- r-1 • T-1 C^ CI ■ r I ■'—7171 • C 1 7 1 7 1 ■ (71 r-t (N ^ (N ^ »-- •-< ITS Tf lO -^ m irt lo 00 00 X 00 CO X 00 t* C^ l> t* l> t> Ir- t^ . . . t^ ■ l>. . . t- 1- ■'•^rttrf'^OOOO^'^ OOOOOOtJiOOSO o o <=>-o oooooooooossino ooooot-oooo o oo ocoo> 0CO0:OO0'*O0GOCOOCO0 oooooooooo OOOCQOOOOOOCGOCOOOOOOOXQCXXX»C:CO'^OOXOOXCCX:S'<*'XtOOO-*XOO oooooooooO':=;ooOi:^oc;n'rtxoooxoc::r-io oxoimoo OS050s05COOSOS7ao;Oi CDXCOOCDCD^OXiCOOT-IO^O^DXCCOWXCDCOinOCOCDOO 05Cco7-JiH'^c;''TOiOst^-^t>OiCS"^ lOOOOOOOOOt-O: CDXiOCD:OCDXXt*«X71'* i-(001Xa50(M(71iCi-l!M (M*-i(M oooooooooooooooooooooooooooooooooooooooooooooooooooo ooooooooooooooooooooooooooooooooooocoooooooooooooooo C c H^ ^ <^ )z; ;^ ;^ ;4 X X ; 592 COLLECTIOX OF INTERNAL REVENUE IN Due, not paid. •annf S fH E" ^ O 1^- ~' Slt^ t- ci ri -■ t~ t^ t~ t- • CI M Ol ?1 1 1 o a >^ sc . ~ S o 1 3 •aunp m ^ ..... o t^ If, iTi in o lt: l- in — fC .-1 W05 • m cc in o • 1 - 1 1 1 (MXCC-*000C00O00 r~ t- t- tN c- i> c- CO c~ 00 OO 00 00 00 00 •» t- 1- . in QC X 00 C- t> l> 00 M OO C- BO COCO -* -* ^ -* ■* Tf ■* 00 T(< ■* O O O O O O O 00 o o ■*-*oocC = 0000000 = 0=;i=000000000 oo=>ooooooooo = cc:o=> = =:oooo=: = o=;oc = = ooooo JO s 1 o S s 1 1 y< : J r - » 1 1 i 7 7 i ■J r t ■/ i - 1 < < i ■ J a: Z < < \ tl < 7 "J 1 J •"a a 7- c = 1- (1. J THE SIXTH DISTRICT OF AORTH CAROLINA. 503 Statevient of pai/menfs wade fo atorfkeepers and storelrepers and {/aiiqers J>>/ J. J. Molt, col- lector isixth district Xorth Carolina, from July 1, 18dl, to March iJl, I8d2. a o a Quarter 1881 end- ing Sept. 30. Quarter 1881 end- ing Dec. 31. Quari ing er 1882 end- March 31. Kaiiio. <1 1- s 1 a i >> 3 1 i- a Abernathv, .T. R $3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 90 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 4 00 4 00 3 00 3 00 3 00 4 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 $9 78 78 78 78 6 78 $81 81 81 18 $78 78 78 78 $78 00 78 00 78 00 78 00 78 00 $78 78 78 78 78 I Alexander, W. T $81 81 81 9 $78 78 78 $72 72 $81 Allgood, D. P An^le, S Arnold, TT. S Atkius, T. A 54 48 81 78 69 81 Bandy, A 36 78 12 78 78 78 78 39 Barkley, G. A 33 36 81 81 '"'is' 36 00 78 81 60 18 72 57 57 45 Barkly, 0. M Baninger, Noah 78 78 24 78 78 00 78 00 78 00 78 00 78 78 78 78 72 63 57 81 81 81 81 81 Beal, B. V 78 78 72 48 Y> Bean, J. W 81 Bell,A.W Bell, R. L 36 30 42 Bell,S.S Bogle, W. G 63 69 48 36 60 30 78 ""9" 81 60 64 50 57 78 75 Brooks, H. M 78 Brown, John M 30 " gi Brown, F. D 6 Bulner, A. B 54 78 72 81 Ben bow, L. S , . . .' Barnhardt, G. E 78 66 78 78 81 78 81 81 78 7« 7K 78 '"72 72 72 Bost, Eli 81 Call, J. S 78 81 78 78 00 36 00 27 00 27 00 81 81 Ca wley, Casstevens, M 78 24 15 81 27 78 Clarke, J. W 72 72 78 72 72 Cloud, Joel Cline, J. R 78" 00 78 00 104 00 75 78 78 104 81 69 81 108 C6 78 78 1C4 51 72 06 78 78 104 60 60 78 15 60 81 108 12 63 81 78 78 104 24 78 78 81 Cooper, A. I).* 108 Crawford, G. W 78 00 78 00 6 00 78 00 78 78 63 81 ""78 '"72" 15 81 Camp, B. B 78 45 78 78 81 81 81 51 57 78 78 Davis, E. H 24 78 36 57 15 18 27 104 104 78 45 36 72 12 00 33 00 30 Davis, L.M Davis, S. C 33 Davis, S. L Douglass, J. G 1 ■■■ 57 00 104 00 104 00 78 00 78 00 57 00 104 00 78 00 27 00 78 104 104 78 78 78 104 78 78 81 108 108 81 81 81 108 81 81 78 104 104 78 '"78" 104 Drake, E.B.* 108 108 81 104 104 78 96 96 72 33 66 96 108 Dula, T. T." 108 Dver, E 18 Dulin. L.M 81 81 Eaves, J. B.* 104 78 78 30 108 81 104 78 108 Ellis, W. R 60 72 81 England, N.B 51 00 75 12 30 81 Eurches, J. M 24 45 78 Flowers, G. F 39 54 81 Ferguson, F. C 27 00 78 00 78 81 75 78 9 21 81 78 72 48 Geutrv, W. A Gillespie, H. A 6 78 24 81 78 18 18 78 72 72 72 72 81 Gongle, W. S 48 63 Gran t, A. T 81 Grover, A 42 81 Gray, J. W 78 48 51 00 78 00 30 00 51 00 78 00 78 69 78 78 78 81 66 81 69 81 78 78 78 78 78 72 72 60 63 72 81 30 33 66 Gudgei,S. R 81 Haithcox, D. M 48 78 81 Hanna, T.M 60 78 81 S. Mis. 116- *General storekeeper and ganger. -39 594 COLLECTION OF INTERNAL REVENUE IN Stidciiiciit of payments made to storekeepers and storekeepers and gangers, ifc. — Continued, Name. Hendrix, W. G. C Heunessee, R, T Hoffman, W.H Holcombe, T. F Holland, W.F Hooper, M. L Hoover, S. A Houton, E. Z Howard, William Hnlfinan, S Hauser, I. H Havs, I-N Heilig.L.A HoweU.H.L Holland, M. A Howell, T,B Haye8,H Hayes, M. L Henderson, T. R Jenkins, A. T Jenkins, P. W Jennings, L. C Johnson, L. C Johnson, S. H Johnson, Emniitt Jenninps, T. L Johnson, J. C Jones, J. S Keilev.T.A Klut/.^A. W Kimbrough, M Kennedy, K. T Keener, J. A Langenour, P. F Lav, W.B LeWis.J.R Littl.-, P. A Lowe.R.R Lo wery, U. L Lourauce, U. W T^onrancf, W. E La.hl.J.L I.add, K M MiIimIC.J. \V Mv.iM. AC. Martin. IL If MiOiiklr, \V. A MyiiH. M.C Mi.tl. U'.li* I'ow.ll. K I'lK-k. A. F I'lirkH. W. P I'lilt. iMoii. J. T.,Jr Piittei-n), C.W PllltlTM.ll, W. W $3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 GO 3 00 3 00 00 00 00 00 00 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 OJ 4 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 4 00 4 00 I 3 00 3 00 1 3 00 I 3 no 3 00 eneriU Quarter 1881 end- ing Sept. 30. $51 39 69 78 66 78 15 T8 78 78 78 21 78 42 69 78 78 ]8 63 75 78 li'4 78 24 78 78 78 78 15 $81 81 69 81 $78 00 78 78 78 63 Quarter 1881 end- ing Dec. 31. 78 00 78 00 45 78 00 45 00 78 00 78 00 78 00 78 81 78 00) 78 00; 78 00 78 00 21 00 104 24 7H 78 78 00 78 00 78 00| 78 I 78 00 78 39 00 , 78 00 78 78 00 78 61 on, 75 78 00 78 78 00 I 75 21 00 78 00 78 78 no: 78 00: 78 00 78 00: 78 78 I 36 104 00 104 I 51 75 001 78 78 00 78 Quarter 1882 end- ing March 31. 78 ?4 81 81 81 108 81 63 81 18 78 78 48 12 104 78 36 78 78 00 stoitikueiter and ganger. THE SIXTH DISTRICT OF NORTH CAROLINA. Statenent of paumrnts mala to storekeepers, if-c. — Coutiuued. 595 Name. Pat teison, W.J Peai.son, D.C* Pet^bles, L. A Peden, J. W Pence, H. A Prevett, W. C Pa,soiir, S. P Rankin, W. R Ramsaj', D. A Reid.R. R Rhyuft, H. M Rlivue, J. L Rhyue, P. J Rhvne, W. H Ru hedge, Z. T Salmons, A. M Sebastian, L. W SSebaatian, Z. T Sharpe, O. W * Sliaver, J. M Sheiill,S. P Sliield-s, T. L Shore, D.H Shore, F. T Shore, H. E Smith, S.P Smitherman, J. T Smyre, E. L Snipes, H.C Soraers, J. D Somers, J. F Somers, P. F Somers, W. V Stacy, J. P Staley, E Stewart, J. H Stowe, L. P Shores, W.C Simouton, J. B Summers, J. N Taylor, J. M Teague, M. M Turner, J. M Tedder,B. F Tharpe. F. G Templeton, Thomas V. stal, Al. H Wallace, K Wcstmoieland, "VV. L AA^ammer, T Walrcii.E.S AV.-lch.S. C Wiles, A AVilkinsou. M. A Williams, I). L Williams, G. W William.s,R Wood, T. S WebsteT-, W. L AVhite, \V. P. A AVoodnift', R. AV White, J. L AVilfim^', C. A Pruitt .T.M Pettv, Mack McFarland, R. S Maich, W. I'. McEntire, J. T Richards, J. B Riggs, J. M Robinson. L. A Brown, H. L Brown, S. D Hallyburton, T.N *G. Quarter 1881 end- ing Sept. 30. $36 104 78 42 60 78 78 l.T 78 78 78 42 78 78 6 78 78 78 104 78 24 78 3 CO 78 108 81 27 81 108 48 39 42 78 104 21 78 00 78 00 78 00 104 00 54 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 al storekeeper and gauger Quarter 1881 end- ing Dec. 31. $78 $39 00 104 1104 00 78 78 00 78 15 00 39 00 78 00 78 00 54 00 63 00 78 78 78 104 63 78 78 00 46'. 50 78 00 78 00 78 00 69 00 78 00 78 00 78 00 78 00 33 00 51 00 45 00 45 00 78 72 00 39 00 18 00 27 00 21 00 66 00 57 00 36 00 39 72 81 108 78 81 57 Quarter 1882 end- ing March 31. $104 54 39 78 104 78 15 78 78 66 78 $96 72 5U6 COLLECTION OF INTERNAL EEVENUE IN NORTH CAROLINA. Stafemeni of pay nun ta made to storeleepcrs, tj-c. — Continued. o p. Quarter 1881 ing Sept. end- 30. Quarter 1881 end- ing Dec. 31. Quar ing er 1882 eud- March 31. X ime. ^ 3 a o p< o M o O g 1 o t4 a a g cs S a a h5 C' a 2 a Hoots w r $3 00 3 00 1 $21 51 72 12 30 3 $45 81 81 81 81 81 30 48 45 15 42 66 12 48 18 63 4^ Rhvne A.B 3 00 3 00 3 00 $78 78 78 66 78 78 78 36 78 78 12 78 21 54 $72 69 48 21 72 72 72 72 72 72 32 39 $81 81 Tavs S L Ward S P Weil C L 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 Aydelotte, J. F OinnoD G. W 81 81 Gill T A 81 Hardin'T S. B 81 Hedrick J. T 81 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 Mnnday,J.F Kamiav J. W 75 1 \ Setzer G. W 78 15 36 54 21 39 66 78 78 54 69 72 81 Burch A.J 15 72 "'"72 72 72 72 15 42 15 Criap, M. B Dickey, J. :^ Hewitt, J. L Hildelnand P. M 81 81 1 51 Lippard, M i 42 3 00- 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 OO 3 00 3 00 81 Is ail A M 81 Slieltoi) J. B 1 81 Marshall R. A 51 Hand A J 81 36 Bowles R C 69 i 6 . 1 45 21 81 Smith C.J 33 Williams L W 27 Shore W. E 18 ) '^J 6 UNIVERSITY OF CALIFORNIA LIBRARY Los Angeles This book is DUE on the last date stamped below. ^#^ AM 7-4 .4^ RECEIVE LD-URL JUN 29 196b ^-9 REC'D LD-URC m^ eEB4 197C PM ^- 10 Form L9-25TO-8, '46(9852)444 UNIVERSl i '■ \Lit'ORNLA| UC SOUTHERN RtGIONAL LIBRARY FACILITY AA 000 846 575 9 iii«^^^^^^ iiilii™^^^ HI I If? nm M V